Retirement planning case, Other Management

We have completed the review of the elements in the retirement planning process. We will conclude Part I with a case assignment, which require students to apply what they have learned so far. Chapter 1 shows how the savings needs of Margot and Craig were identified, and how Francesca, their financial planner, estimated  their  retirement savings needs and how much  they would need  to  save each year. To do so, Francesca has done a number of calculations:

1. How much they need after tax.

2. How much  this is before  tax assuming they are able to perfectly split  their retirement income. This also provides their average tax rate in retirement.

3. The present value at retirement of their annual retirement income.

4. The present value at retirement of government and employer-sponsored pension plans.

5. The future value at retirement of their present RRSP balances.

6. The future value at retirement of the amount they plan to save each year.

Having completed Chapters 2 to 7, students are now ready to prepare their own financial plan.

You have recently been awarded the CFP designation after having worked for Francesca as an assistant planner for four years. Francesca has decided you are ready to work independently and has given you your first assignment: Leonard and Rose  Domino.Background Information Leonard and Rose Domino, both age 43, have been married for 10 years. They live in Sudbury,  Ontario. Leonard and Rose have two children, twins, age 8, Charlotte and Tony. The Dominos come to see you in early January 2011 and provide you with the following information. 

Employment Information

Leonard work as a management accountant with a group of independent accountants who share office space and office staff. He has several clients who use his services on a part-time, monthly basis. His professional income after expenses was $92,000 for 2010 and has been that for several years. Leonard is, in effect, self- employed and, as a result, pays both the employee and employer's CPP  contributions but not EI premiums.

He expects his income will remain about the same in real terms until retirement.  There is no pension plan and he contributes  the maximum possible to his RRSP every year. The accounting office has a group insurance plan - a benefits package that provides him with life insurance coverage for twice his annual income after expenses, short-term disability coverage, as well as an extended health  care for his family. He pays the premium of $155 a month for family coverage. This amount is not tax deductible for him. In addition, Leonard pays, at work, $960 p.a. in  long-term disability  insurance premiums which would provide him with 2/3 of $92,000 should he become totally disabled. Because Leonard pays the premiums which are not tax deductible, the 2/3 would be received as non-taxable income.

Posted Date: 3/1/2013 7:02:39 AM | Location : United States







Related Discussions:- Retirement planning case, Assignment Help, Ask Question on Retirement planning case, Get Answer, Expert's Help, Retirement planning case Discussions

Write discussion on Retirement planning case
Your posts are moderated
Related Questions
Problem: According to Bush's management models of schools, the formal models dominated the early stages of theory development in educational management and the other models dev

Question 1 Write about the Namma Angadi event. Explain the processes responsible for making the events happen Question 2 Write a long note on event interaction Question 3

Catalogue Code: As with classification schemes, there are different catalogue codes available for use in libraries. Two of them are already known to you as they are prescribed

C ommunity The community element requires attention, organisation and also nurturing. The members of the community might choose to join together to help each other and share t

LIBRARY BUILDING Libraries come in various types and  sizes  to fulfill certain specific needs of the community it is established to serve. Thus we  can have a single room vil

Information Centres: It is now customary to establish documentation cells within many special libraries to provide different types of information services to their clients. Wh


QUESTION a) ISO 9001:2008 series embraces eight quality management principles. By using relevant examples in the business context, discuss the potential benefits an organizatio

Information Demand  Information services are needed to provide information not only on demand but also in anticipation of its use. Often it will be necessary to repackage the

Question 1 Explain the importance of Organisational development to managers. Describe the characteristics of Organisational Development Question 2 What is meant by Organisati