The Institute for Financial Learning | Education Center

Professional Couple
This couple is in their 40s, he is doing well operating a dental practice. But all his business success didn't prepare him for the challenges he faced a few years ago. With three children, one of them college-aged, they had to figure out how to pay for their college education. And due to a whopping $160,000 loss at the hands of his financial adviser in 1998, where his portfolio was primarily in start-up companies, which were described as "having great potential if they develop but no history of performance."

Looking back at his relationship with his financial adviser, he says it was "difficult, because he didn't seem to be hearing what I was saying. He was putting me into [investments] he wanted me in rather than what was in my best interest."

Although he was making a good living running his business he knew he had to develop a portfolio which included his retirement and his children's education fund, and he needed to start now.

AGE: 43

YEARS TO FINANCIAL FREEDOM: 12

HOUSE HOLD INCOME: $200,000

ASSETS:
	Registered funds: (RRSP, 401K, etc.)	$	75,000
	Non-Registered funds: (Cash, Stocks, Bonds, G.I.C.s/CDs)	$	25,000
	Real Estate Equity:	$	150,000
	Business Retained Earnings:	$	50,000

	TOTAL ASSETS:	$	300,000

PROJECTED GROWTH
	Total asset growth Years: 20 x 10% Interest/Yr =	$	941,529
	Annual growth@ 10% Interest/Yr =	$	94,153
FUTURE INCOME NEEDED FOR FINANCIAL FREEDOM		$	285,152
	Calculation based on current income projected at a 3% rate of inflation

PROJECTED RESULTS PRODUCE SHORTFALL – FINANCIAL OBJECTIVE NOT MET

190,999

Options to meet financial goals:
	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)