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Baby Boomers With Kids
This middle aged couple with a daughter in college age 19, and a son in his senior year age 17, are fast approaching that empty nest. As a couple they are spending more one on one time then they have had since before starting their family. Even though the children are still financially dependent they are essentially taking care of themselves so this couple look towards the next stage of their married life and begin making some decisions. He is a consultant with a group of corporate clients, and would like to move his office into their home and she is a real estate assistant for a small brokerage firm in town. They want to remain in their home because all their friends live within walking distance. Their new love is to travel and to play golf, but they have discovered that it is taking a large part of their income to support these new activities.
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| AGE: 52 |
YEARS TO FINANCIAL FREEDOM: 8 |
| HOUSE HOLD INCOME: $90,000 |
| ASSETS: |
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Registered funds: (RRSP, 401K, etc.) |
$ |
25,000 |
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Non-Registered funds: (Cash, Stocks, Bonds, G.I.C.s/CDs) |
$ |
25,000 |
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Real Estate Equity: |
$ |
200,000 |
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Business Retained Earnings: |
$ |
50,000 |
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TOTAL ASSETS: |
$ |
300,000 |
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| PROJECTED GROWTH |
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Total asset growth Years: 20 x 10% Interest/Yr = |
$ |
643,077 |
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Annual growth@ 10% Interest/Yr = |
$ |
64,308 |
FUTURE INCOME NEEDED FOR FINANCIAL FREEDOM |
$ |
114,316 |
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Calculation based on current income projected at a 3% rate of inflation |
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| PROJECTED RESULTS PRODUCE SHORTFALL – FINANCIAL OBJECTIVE NOT MET |
$ |
50,008 |
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| Options to meet financial goals: |
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1. INCREASE INVESTMENT DOLLARS (save more)
2. ESTABLISH A HIGHER RETURN (possibly risk more)
3. EXTEND TIME FRAME TO REACH FINANCIAL FREEDOM (work more)
4. DOWNGRADE LIFESTYLE (spend less)
5. JOIN THE INSTITUTE FOR FINANCIAL LEARNING (discover more) |
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