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Young Couple
With their whole lives in front of them, this newly married couple begins the timeless process of deciding what course that their lives will take. Her father runs a construction company and has built them a starter home. Normally, this would be a huge benefit for any young couple; however, this couple is not so lucky. Their home is a two-storey 1755sq.ft. walk-out in a trendy area of town and like many couples today they have felt the need to furnish this home with all the trendy comforts possible. They were amazed at the money that their bank would lend them for upgrades and to celebrate they purchased all new furniture, even having enough for a six-person hot tub which was placed outside on their new sun deck. He has not yet decided what he wants to do for a living and is currently working as a laborer with his wife’s father. She is an administrator for one of the state-run health care providers. Today, he is coming home to his wife with the news that he has put a deposit on a new truck that he has had his eyes on for some time now. They hope to go on a tropical holiday this Christmas with some friends.

 
AGE: 28 YEARS TO FINANCIAL FREEDOM: 30
HOUSE HOLD INCOME: $50,000
ASSETS:    
  Registered funds: (RRSP, 401K, etc.) $ 0
  Non-Registered funds: (Cash, Stocks, Bonds, G.I.C.s/CDs) $ 0
  Real Estate Equity: $ 40,000
  Business Retained Earnings: $ 0
       
  TOTAL ASSETS: $ 40,000
PROJECTED GROWTH    
  Total asset growth Years: 20 x 10% Interest/Yr = $ 697,976
  Annual growth@ 10% Interest/Yr = $ 69,798

FUTURE INCOME NEEDED FOR FINANCIAL FREEDOM

$ 121,363
  Calculation based on current income projected at a 3% rate of inflation
PROJECTED RESULTS PRODUCE SHORTFALL – FINANCIAL OBJECTIVE NOT MET $ 51,565
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)