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Retirement Planning - WK Financial

VIEWS: 13 PAGES: 128

									Comprehensive
  Analysis
   PREPARED EXCLUSIVELY FOR

  Anthony and Deborah Klient
            City, Ontario




          PREPARED BY:
      Jeff E. Keller, BA, CFP
     Certified Financial Planner

         January 12, 2009
Table of Contents
To refresh the Table of Contents, click here and press the F9 key on your keyboard.




August 19, 2012                                                                 Page 2 of 128
Disclaimer
This report is intended to provide you with an analysis of your major financial goals. It is based on
the data and assumptions that you have provided or instructed us to make. Consequently, the
outcome of the analysis will be dependent upon the accuracy of your data and reasonableness of
your assumptions. Please review all the assumptions in the Synopsis section before reviewing the
rest of the report, to ensure the accuracy and reasonableness of the assumptions. Inaccurate or
unreasonable assumptions may materially impact the results of the plan. In any case, it is important
to note that actual results may differ due to any number of events. Some events are within your
control, such as your spending habits, while other events, such as market performance, interest
rates and tax policies, are not.
The appropriate professionals should be consulted on all legal and accounting matters prior to or in
conjunction with implementation of the plan.
In addition, we have made no attempt to review your property and liability insurance policies (auto
and homeowners, for example). We strongly recommend that in conjunction with this financial plan,
you consult with your property and liability agent to review your current coverage to ensure it
continues to be appropriate. In doing so, you may wish to review the dollar amount of your
coverage, the deductibles, the liability coverage (including an umbrella policy) and the premium
amounts.




August 19, 2012                                                                         Page 3 of 128
Introduction
Anthony and Deborah, this report is intended to be a detailed analysis of your current financial
affairs and recommendations to help you achieve your financial objectives. Before we continue, let’s
summarize our activity to date. So far we have
      collected all of your relevant personal and financial data
      identified your financial goals and established priorities
      identified the strengths and weaknesses of your current financial situation
Next, we will analyze strategies that will affect your current financial position. Every financial
alternative has both strengths and weaknesses. Early in the financial planning process we defined
your financial objectives. Now we must see how the proposed plan meets these objectives. There
may be trade-offs to consider in both your personal and financial goals. For example, to achieve
your retirement objectives you may have to reduce your current spending and save more for the
future.
This report is divided into sections that detail the financial implications of your current financial
situation and proposed plan. Each section also provides an explanation of the relevance of this
information.

Why develop a financial plan?
Most people find that managing their finances is a challenge. We face many opportunities,
obstacles and hazards along the way. We struggle with the anxiety relating to our personal financial
circumstances. Also, many families are too busy dealing with the challenges of day-to-day life to
think about next month, let alone retirement, which may be twenty years or more into the future!
Let us think a moment about a simple short-term goal. Would you go on a vacation without doing
some basic planning – where you want to go, how you’re going to get there, how much money you
need, what items you should pack?
Even with the best of efforts in preparing your vacation, you will have to make adjustments along
the way.
Financial planning is no different. By developing a financial plan, you and your family will
      take control of your financial future
      set realistic, attainable retirement, education, insurance and major purchase goals
      have the necessary financial resources to fund these goals as they occur
      reduce the effect of negative events in your life, such as disability, layoffs, death, etc.




August 19, 2012                                                                             Page 4 of 128
                  Client Information




August 19, 2012                 Page 5 of 128
Client Profile
                      Client                            Spouse
Name:                 Anthony Klient                    Deborah Klient
Date of Birth:        January 5 1954                    July 29 1957
Age:                  55                                52
Social Insurance #:   000 000 000                       000 000 000

Address:              99 Anyway Dr.                     99 Anyway Dr.
                      City, Ontario N0N 0N0             City, Ontario N0N 0N0

Home Telephone #:     519-555-5555                      519-555-5555
Bus. Telephone #:
E-mail:

Occupation:



Dependant Information
Name:                 Gary Sample             Rob Sample
Date of Birth:        August 3 1987           May 12 1989
Age:                  22                      20
Social Insurance #:   000 000 000             000 000 000




August 19, 2012                                                                 Page 6 of 128
Financial Goals
In the analysis of your plan, we will begin with an overview of your financial objectives. These items
will be expanded in the analysis section of this report.
      Anthony wishes to retire on January 1, 2014 at age 60, while Deborah wishes to retire on
       July 1, 2013 at age 56.
      You want to ensure an adequate retirement income to fund your retirement needs, which,
       after taking inflation into consideration, are estimated to be approximately $68,500 per year.
      Your emergency fund target is currently $13,570, and you have set aside $4,630 to cover
       that goal.
      In the event of death or disability, you wish to ensure that your family’s goals are still
       attainable.
      You wish to use your retirement income in a tax-efficient manner, minimizing the total
       income taxes paid.




August 19, 2012                                                                         Page 7 of 128
Financial Assumptions
In preparing projections we use actual figures where they are known, applicable assumptions based
on historical data, and your evaluations of your future. Please keep in mind that these assumptions
are subject to change over time. It is important for you to monitor and evaluate your assumptions
periodically.
      Inflation Rate: Canada’s inflation rate has ranged during the last three decades from a high
       of 12.5% in 1981 to a low of 0.2% in 1994. In preparing your financial plan, we have used
       3.00% annual inflation for all projections.
      Canada Pension Plan (CPP): Anthony will begin receiving CPP benefits at age 60.
       Deborah will also begin receiving CPP benefits at age 60. CPP benefits will continue as long
       as you live.
      Old Age Security (OAS): Anthony will begin receiving OAS benefits at age 65. Deborah will
       also begin receiving OAS benefits at age 65. OAS benefits will continue as long as you live.

      Expected Rates of Return by Goal:
         Retirement Goal: The average expected rate of return for assets linked to your
          Retirement goal is 7.78% in your current plan. The average expected rate of return for
          assets linked to your Retirement goal is 7.73% in our proposed plan.
         Insurance Proceeds: The average expected rate of return on invested insurance
          proceeds in the event of either of your death is 7% in your current plan. The average
          expected rate of return on invested insurance proceeds in the event of either of your
          death is 7% in our proposed plan.

In preparing the projections, we assume that tax rates will not change unless such changes have
already been legislated. We have also assumed that the tax brackets and tax items such as the
basic personal amount will increase over time by the chosen inflation rate.




August 19, 2012                                                                       Page 8 of 128
                  Executive Summary




August 19, 2012                 Page 9 of 128
         Net Worth Analysis
         The following graph compares the net worth between your current plan and our proposed plan.
         Plan A: Current Plan
         Plan B: Proposed Plan
                   $1,600,000
                                       Plan A: Total Net Worth
                   $1,400,000          Plan B: Total Net Worth

                   $1,200,000


                   $1,000,000
Amount




                    $800,000


                    $600,000


                    $400,000


                    $200,000


                           $0
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         In your current plan, your net worth at retirement, in the year 2013, is $1,118,875, and at the end of
         the plan, in the year 2046, it is $123,059.
         In our proposed plan, your net worth at retirement, in the year 2014, is $1,246,894, and at the end
         of the plan, in the year 2046, it is $1,118,015.

         Consider the following:
         There are several strategies that can be implemented immediately to enhance your net worth.
         These include:
               analyzing and implementing the proper asset allocation
               making effective use of your current income and channelling excess funds to appropriate
                savings plans




         August 19, 2012                                                                                                            Page 10 of 128
Cash Flow Analysis
Plan A: Current Plan
Plan B: Proposed Plan
The following graph compares the total funds received between your current plan and our proposed
plan.
                   $220,000
                                Plan A: Total Funds Received
                   $200,000
                                Plan B: Total Funds Received
                   $180,000


                   $160,000
Am ount




                   $140,000


                   $120,000


                   $100,000


                    $80,000


                    $60,000


                    $40,000
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The following graph compares the total expenses between your current plan and our proposed
plan.
                   $220,000
                                Plan A: Total Expenses
                   $200,000     Plan B: Total Expenses

                   $180,000


                   $160,000
Am ount




                   $140,000


                   $120,000


                   $100,000


                    $80,000


                    $60,000
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In your current plan, the analysis indicates you will begin to experience significant cash flow
shortfalls in the year 2041.
In our proposed plan, the analysis indicates you will not experience any significant cash flow
shortfalls throughout your lifetime.

Consider the following:
There are a number of cash flow management techniques you can use, including the following:
             Make a list of all your current expenses. If you find this difficult, start with your chequing
              account statement or other bill-paying system. Save receipts and/or keep a written record of
              your spending. The review of the receipts is often very enlightening at the end of the month.
             Determine which expenses are discretionary and which expenses are not. For example,
              your mortgage or rent payment is not discretionary, but the amount you spend on
              entertainment is discretionary.
             Prioritize your discretionary expenses, including savings. You and your family must decide
              which of the discretionary expenses can be adjusted.
             Consider paying yourself first! An automatic savings program that deducts your savings and
              investment contributions is an effective way to save. Saving what is left over at the end of
              the month or year is rarely as successful.




August 19, 2012                                                                                                                                        Page 11 of 128
         Income Tax Planning
         Plan A: Current Plan
         Plan B: Proposed Plan
         The following graph compares the total tax between your current plan and our proposed plan.
                   $30,000
                                            Plan A: Total Tax
                                            Plan B: Total Tax
                   $25,000



                   $20,000
Amount




                   $15,000



                   $10,000



                       $5,000



                          $0
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         The following graph compares average tax rates between your current plan and our proposed plan.
                 20%
                                   Plan A: Average Income Tax Rate
                 18%
                                   Plan B: Average Income Tax Rate
                 16%

                 14%

                 12%
Amount




                 10%

                 8%

                 6%

                 4%

                 2%

                 0%
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         Consider the following:
             Saving to a Registered Retirement Savings Plan (RRSP) to defer taxes.
             Contribute to your company’s defined contribution pension plan (if available).
             Investment planning should also take advantage of the tax rules to ensure you maximize the
               after-tax return on your investments. In other words, your goal is to select tax-favourable
               investments that are consistent with your overall investment plan.
             Permanent life insurance can offer a number of tax advantages.

         We should discuss which, if any, of these strategies would be most appropriate for your situation
         and any potential tax savings strategies that might be available to you.




         August 19, 2012                                                                                                                                                                               Page 12 of 128
   Retirement Planning
   The following graphs illustrate the relationship between your projected retirement needs and your
   ability to cover those needs, for your current plan and our proposed plan.

                                                                                Current Plan
                      $ 180,00 0
                                      Retirement Needs
                      $ 160,00 0      Uncapped Retirement Abilities


                      $ 140,00 0


                      $ 120,00 0
Amount




                      $ 100,00 0


                       $ 80,000


                       $ 60,000


                       $ 40,000
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                                                          Current       Amount (Under                                                           Additional
                         Retirement                      Retirement      Funded) Over Current Monthly                                            Monthly
                                     1                                            2                                                                     3
                       Income Needs                       Assets           Funded         Savings                                               Savings
                                                                                                                                                            4
                               $58,639                         $537,080      ($676,252)            $0                                                   N/A
   1
         Projected annual needs (in today's dollars) in the first full year of retirement, after tax.
   2
         Amount represents the ending retirement surplus/deficit.
   3
    Estimated amount based on saving to Suggested Asset Mix. This field will be empty for goals that don't have a
   Suggested Asset Mix.
   4
         The mechanics of the plan make it impossible or impractical to calculate this number.
   The average expected rate of return for assets linked to your retirement goal in your current plan is
   7.78%.

                                                                           Proposed Plan
                      $ 220,00 0
                                      Retirement Needs
                      $ 200,00 0      Uncapped Retirement Abilities

                      $ 180,00 0


                      $ 160,00 0
Amount




                      $ 140,00 0


                      $ 120,00 0


                      $ 100,00 0


                       $ 80,000


                       $ 60,000
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                                                                                                         Year


                                                          Current       Amount (Under                                                           Additional
                         Retirement                      Retirement      Funded) Over Current Monthly                                            Monthly
                                     1                                            2                                                                     3
                       Income Needs                       Assets           Funded         Savings                                               Savings
                               $58,639                         $557,277       $305,980           $300                                                          $0
   1
         Projected annual needs (in today's dollars) in the first full year of retirement, after tax.
   2
         Amount represents the ending retirement surplus/deficit.
   3
    Estimated amount based on saving to Suggested Asset Mix. This field will be empty for goals that don't have a
   Suggested Asset Mix.


   August 19, 2012                                                                                                                                           Page 13 of 128
The average expected rate of return for assets linked to your retirement goal in our proposed plan is
7.73%.

Consider the following:
    Determine changes to your planned spending in retirement. To simplify this task, begin with
      your expenses today.
    Develop an effective savings strategy that takes into consideration asset allocation and tax
      favourable retirement plans available to you, such as RRSPs.
    Prioritize your retirement objective to balance it with your other goals such as insurance
      needs, children’s education, major purchase and current income needs.




August 19, 2012                                                                       Page 14 of 128
Emergency Fund Planning
A general guideline for emergency funds is to maintain a fund of liquid assets, which can be easily
converted into cash, to cover emergency expenses. Your emergency fund target is currently
$13,570.
The following tables illustrate the amounts needed to meet potential emergency financial situations
for the next five-year period and those funds that you have currently allocated. Your emergency
fund is under-funded by $8,940, in your current plan and in our proposed plan.

                                                               Current Plan
            $ 1 6 ,0 0 0                                                                Emergency Fund Target
            $ 1 5 ,0 0 0                                                                Emergency Fund Amount Allocated
            $ 1 4 ,0 0 0

            $ 1 3 ,0 0 0

            $ 1 2 ,0 0 0

            $ 1 1 ,0 0 0
Am o un t




            $ 1 0 ,0 0 0

             $ 9 ,0 0 0

             $ 8 ,0 0 0

             $ 7 ,0 0 0

             $ 6 ,0 0 0

             $ 5 ,0 0 0

             $ 4 ,0 0 0
                           2 0 09          2 0 10     2 0 11        2 0 12     2 0 13
                                                      Ye ar




                                                   Emergency   Amount     Amount       Percent
                                    Year   Age(s) Fund Target Allocated Over/(Under) Over/(Under)
                                    2009     55/52     13,570      4,630       (8,940)        (66)
                                    2010     56/53     13,976      4,630       (9,346)        (67)
                                    2011     57/54     14,394      4,630       (9,764)        (68)
                                    2012     58/55     14,824      4,630      (10,194)        (69)
                                    2013     59/56     15,267      4,630      (10,637)        (70)



                                                               Proposed Plan
            $ 1 6 ,0 0 0                                                                Emergency Fund Target
            $ 1 5 ,0 0 0                                                                Emergency Fund Amount Allocated
            $ 1 4 ,0 0 0

            $ 1 3 ,0 0 0

            $ 1 2 ,0 0 0

            $ 1 1 ,0 0 0
Am o un t




            $ 1 0 ,0 0 0

             $ 9 ,0 0 0

             $ 8 ,0 0 0

             $ 7 ,0 0 0

             $ 6 ,0 0 0

             $ 5 ,0 0 0

             $ 4 ,0 0 0
                           2 0 09          2 0 10     2 0 11        2 0 12     2 0 13
                                                      Ye ar




                                                   Emergency   Amount     Amount       Percent
                                    Year   Age(s) Fund Target Allocated Over/(Under) Over/(Under)
                                    2009     55/52     13,570      4,630       (8,940)        (66)
                                    2010     56/53     13,976      4,630       (9,346)        (67)
                                    2011     57/54     14,394      4,630       (9,764)        (68)
                                    2012     58/55     14,824      4,630      (10,194)        (69)
                                    2013     59/56     15,267      4,630      (10,637)        (70)

Consider the following:
   A general rule is for this fund to equal at least three months of your expected expenses.
   Investments that are well suited for an emergency fund include savings accounts, money
      market accounts and short-term Guaranteed Investment Certificates (GICs).




August 19, 2012                                                                                                           Page 15 of 128
               Monte Carlo Analysis
               The following graphs and tables summarize the probability of the success of each of your goals, for
               your current plan and our proposed plan. In performing the Monte Carlo Analysis on your plans, we
               have projected 150 iterations of your plan.
               The success of each goal is dependent upon whether there are sufficient assets designated to fund
               the particular objective. Your overall plan may be highly successful due to the fact that you have
               significant investments but your goal may have a low success rate if there are insufficient assets
               associated with the goal. The success of All Goals is the overall likelihood that every goal will be
               reached. If the success rate of any of the goals is less than satisfactory you may want to consider
               designating additional assets to the appropriate goal.
               In addition to the success of each goal, the table below also illustrates the 90th, 50th and 10th
               percentile value of the assets associated with each goal. The 90th percentile illustrates the
               projection where 90% of the results are below this value. The 50th percentile is the median
               projection where half the projections fall above and half fall below this value. The 10th percentile
               illustrates the projection where 10% of the results are below this value.

                                                            Current Plan
                      100%
                                 Retirement Goal - 29%
                       90%

                       80%

                       70%
Success Rate




                       60%

                       50%

                       40%

                       30%

                       20%

                       10%

                        0%


               Goal                         Success      10th Percentile   50th Percentile   90th Percentile
                                             Rate
               Retirement Goal              28.67%        -$1,219,460         -$34,212          $778,074




               August 19, 2012                                                                                 Page 16 of 128
                                                          Proposed Plan
                      100%
                                 Retirement Goal - 59%
                       90%

                       80%

                       70%
Success Rate




                       60%

                       50%

                       40%

                       30%

                       20%

                       10%

                        0%


               Goal                         Success      10th Percentile   50th Percentile   90th Percentile
                                             Rate
               Retirement Goal              58.67%         -$939,094          $746,688         $1,718,881



               Consider the following:
                  Do your investments provide you with sufficient cash flow over the entire planning horizon?
                  Do large holdings of non-income-producing real estate need to be liquidated at some point
                     during your lifetime?
                  Do you have adequate investments to cover shorter-term objectives such as education,
                     major purchase or expense items?
                  Is the level of risk for your investments appropriate? Could you satisfy your financial
                     objectives with a lower level of risk?
                  Comparing plans with two different risk profiles allows you and your advisor to analyze the
                     relative success of the two plans.




               August 19, 2012                                                                                 Page 17 of 128
Disability Insurance Planning
Anthony currently has no disability insurance coverage.
In the event of Anthony's disability next year, it appears you may not be able to meet your goals.
You could purchase up to an additional $2,609 per month, of disability insurance, to replace your
existing monthly income.

Deborah currently has no disability insurance coverage.
In the event of Deborah's disability next year, it appears you may not be able to meet your goals.
You could purchase up to an additional $3,587 per month, of disability insurance, to replace your
existing monthly income.

             Analysis Items                               If Anthony is disabled                    If Deborah is disabled
  Analysis Period (to retirement)                                           5 Years                                   4 Years
  Analysis Period (post-retirement)                                        31 Years                                  32 Years
  Average Annual Projected Deficit                                               $1                                        $1
  Largest Annual Projected Deficit                                               $8                                       $17
  Current Employment Income                                       $2,609 per month                          $3,587 per month
  Existing Insurance Coverage*                                        $0 per month                              $0 per month
  Additional Insurance Required to                               $2,609 per month                          $3,587 per month
  Replace Current Income
* This amount reflects only Long Term Disability policies, and does not take into account any waiting periods that these policies may be
  subject to. For additional details on your existing insurance coverage, please see Appendix – Plan Data Summary at the end of this
  document.


The “Additional Insurance Required to Replace Current Income” amount indicated above
represents the amount of disability insurance that would need to be purchased in order to
completely replace your current income, in the event of your disability. This amount of insurance
may not actually be required, or it may not be sufficient, to ensure that your goals are met.
Depending on the circumstances, you may or may not be able to purchase this amount of disability
insurance. We should further discuss your disability insurance needs to clarify these issues.

Consider the following:
    Ask yourself what expenses would change if either you or your spouse became disabled
      tomorrow.
    Review group coverage at work. You may not want to rely on just group policies in the event
      that you change jobs or your employer changes to another insurer where you may no longer
      be eligible. The coverage may also be inadequate.
    Review your existing policy’s monthly disability benefit, definition of disability, waiting period
      and duration of benefits.
    Review the coverage periodically and adjust it according to the changes in your income and
      expense needs.




August 19, 2012                                                                                                       Page 18 of 128
Life Insurance Planning
Anthony currently has $10,000 of life insurance coverage.
In the event of Anthony's death this year, you would need an additional $180,000 of life insurance
in order to meet your family’s needs.


Deborah currently has no life insurance coverage.
In the event of Deborah's death this year, you do not need any additional life insurance in order to
meet your family’s needs.
The following table highlights your financial situation as of January 1, 2010, in the event of each
head's death. For purposes of this analysis, we assume that each member dies on December 31st,
2009.

               Cash flow items                            If Anthony dies this year                     If Deborah dies this year
    Available Assets                                                          $578,858                                      $578,858
    Existing Life Insurance Coverage                                           $10,000                                            $0
                             1
    Total Insurance Required                                                  $190,000                                            $0
    Recommended Additional Life                                               $180,000                                            $0
                          2
    Insurance Coverage
    Remaining Assets at Last Death                                                           $0                                   $409,571
1
    Represents the total amount of life insurance coverage that is required to meet your financial goals, should one of you die this year.
2
    The recommended additional coverage includes any under-funded financial goal such as education and retirement.



Consider the following:
   Ask yourself what expenses would change if either you or your spouse died tomorrow.
   Review group coverage at work. You may not want to rely on just group policies in the event
      that you change jobs or your employer changes to another insurer where you may no longer
      be eligible. The coverage may also be inadequate.
   Review the coverage periodically to ensure it continues to meet your family’s changing
      needs.
   It is also important to consider continued savings to fund other financial goals.




August 19, 2012                                                                                                            Page 19 of 128
                  Net Worth Analysis




August 19, 2012                 Page 21 of 128
Net Worth Overview
Your current financial position is a key factor in your financial plan. You need to know where you
are today before you can begin your financial journey to where you would like to be.
Your net worth statement is a listing of all the assets you currently own, like your house, cars, bank
accounts, investments, life insurance policies and other personal property and your liabilities.
Typical liabilities are your mortgage, credit cards, and other debts. Your net worth is represented by
the difference between these two values. In theory, if you sold all your assets and paid off all your
liabilities, this is the amount that you would have left over before taxes.
A net worth statement is important because it helps to check progress towards financial goals, plan
for changes in assets or liabilities, estimate how well dependant survivors would be able to live on
their current inheritance, give an estimate of retirement income potential and provide a way to chart
financial progress over the years. You may increase your net worth by saving more money, paying
off debt and deciding how aggressively you invest your assets.
Your net worth statement is an essential financial planning tool. You should update it at least yearly
and whenever there is a major change in your assets and/or liabilities.
When you know your net worth, you can set realistic financial goals.




August 19, 2012                                                                        Page 22 of 128
Net Worth Statement (Current) – as of January 12, 2009
This net worth statement provides a snapshot that shows your financial situation as of January 12,
2009. It includes the market value of what you currently own (assets) and what you owe to your
creditors (liabilities). The difference between these two values is your net worth. In simple terms,
the net worth statement shows how much money would be left if everything owned was converted
into cash and used to pay off debts.

                                               Anthony     Deborah     Joint      Total
          Non-Registered Assets
            Scotia McLeod Portfolio                                     418,252    418,252
            Total Non-Registered Assets                                 418,252    418,252

          Registered Assets
            Scotia McLeod MF Portfolio            62,625                            62,625
            Scotia McLeod MF Portfolio                        56,202                56,202
            Total Registered Assets               62,625      56,202               118,828

          Lifestyle Assets
             Anthony & Deborah's House                                  314,740    314,740
             Total Lifestyle Assets                                     314,740    314,740

          Life Insurance Cash Value
             Anthony Klient                        4,630                             4,630
             Total Life Insurance Cash Value       4,630                             4,630

          Total Assets                            67,255      56,202    732,992    856,450

          Total Net Worth                         67,255      56,202    732,992    856,450




August 19, 2012                                                                       Page 23 of 128
Net Worth Projection (Current) – 2010 to 2014
This net worth projection illustrates the expected change in your assets and liabilities based on your
current investment allocation, savings and spending habits. The projected growth rate of each asset
is based on the assumptions we made for each of these items. Some assets may be expected to
grow quickly such as any stock investments and others may expect little growth. Certain assets
such as vehicles may also decrease (depreciate) in value. Debts such as loans and mortgages
typically decrease over time unless additional amounts are borrowed.



                                         2010:56/53       2011:57/54       2012:58/55       2013:59/56         2014:60/57
Non-Registered
  Scotia McLeod Portfolio (Joint)             487,849          526,877          569,027          600,085            587,643
  Subtotal                                    487,849          526,877          569,027          600,085            587,643

Registered
  Scotia McLeod MF Portfolio (Anthony)         71,700           76,719           82,089           87,835             93,984
  Scotia McLeod MF Portfolio (Deborah)         64,346           68,850           73,670           78,827             84,345
  Subtotal                                    136,046          145,569          155,759          166,662            178,329

Lifestyle
   Anthony & Deborah's House (Joint)          327,455          334,004          340,685          347,498            354,448
   Subtotal                                   327,455          334,004          340,685          347,498            354,448

Life Insurance
   Anthony Klient                               4,630            4,630            4,630            4,630              4,630
   Subtotal                                     4,630            4,630            4,630            4,630              4,630

Surplus/(Deficit)                                     0                0                0                0                  8

Total                                         955,981        1,011,081        1,070,101        1,118,875          1,125,057




August 19, 2012                                                                                              Page 24 of 128
         Net Wealth Accumulation (Current)
         The following graph illustrates how each component of your net worth is projected to
         increase/decrease prior to retirement. These projections are based on the strategies and
         assumptions you currently have in place in projecting your plan over your lifetime.

               $1,100,000                                                        Lifestyle Assets
                                                                                 Business Assets
               $1,000,000
                                                                                 RRSP Assets
                                                                                 Pension Assets
                                                                                 Investment Assets
                $900,000
                                                                                 Life Insurance CSV
                                                                                 Accumulated Surplus/ Deficit
                $800,000
                                                                                 Assets Subject to Deferred Tax †

                $700,000



                $600,000
Amount




                $500,000



                $400,000



                $300,000



                $200,000



                $100,000



                      $0
                            2009         2010           2011           2012

                                                Y ear



                                           † Taxes due upon sale or redemption
         Note that any life insurance assets represent the cash surrender value (CSV) of life insurance
         policies included in your plan. Also, Lifestyle Assets may include your house, cottage, automobiles
         or any other personal assets.
         Your projected net worth at Deborah's retirement in the year 2013 is $1,118,875.




         August 19, 2012                                                                             Page 25 of 128
Net Wealth Accumulation (Current)
The following report illustrates how each component of your net worth is projected to increase/decrease prior to retirement. These
projections are based on the strategies and assumptions you currently have in place in projecting your plan over your lifetime.

                     Lifestyle   Business                   Pension       Investment Life Insurance   Accumulated       Total Net    Assets Subject
   Year    Age(s)     Assets      Assets    RRSP Assets     Assets          Assets         CSV       Surplus/ Deficit    Worth      to Deferred Tax †
   2009      55/52       321,035          0     127,146               0       451,712          4,630                0       904,523           230,979
   2010      56/53       327,455          0     136,046               0       487,849          4,630                0       955,981           257,948
   2011      57/54       334,004          0     145,569               0       526,877          4,630                0     1,011,081           286,985
   2012      58/55       340,685          0     155,759               0       569,027          4,630                0     1,070,101           318,250
                                                          † Taxes due upon sale or redemption




August 19, 2012                                                                                                                         Page 26 of 128
Wealth Accumulation Savings (Current)
The following report illustrates your current savings to each component of your investments prior to retirement. This report illustrates the Net
savings; in other words, if more funds are withdrawn than saved, this amount will be a negative number.



                                                                                Investment                                                             Wealth
                   Lifestyle Net RRSP/RRIF Net Pension Net Investment Net          Assets          Business Net Business Assets   Life Insurance     Accumulated
  Year   Age(s)    Contributions Contributions Contributions Contributions     Reinvestments       Contributions  Reinvestments Net Contributions      Savings
  2009     55/52                0             0             0              0                   0                0               0                0                 0
  2010     56/53                0             0             0              0                   0                0               0                0                 0
  2011     57/54                0             0             0              0                   0                0               0                0                 0
  2012     58/55                0             0             0              0                   0                0               0                0                 0




August 19, 2012                                                                                                                                      Page 27 of 128
Net Worth Projection (Proposed) – 2010 to 2014
This net worth projection illustrates the change in your assets and liabilities based on changes in
your proposed plan. Items that may affect your net worth projection include changes to your savings
amounts, asset allocation, return rate assumptions, spending habits and tax assumptions.

                                         2010:56/53       2011:57/54       2012:58/55       2013:59/56         2014:60/57
Non-Registered
  Scotia McLeod Portfolio (Joint)             473,719          511,616          552,546          596,749            636,124
  Subtotal                                    473,719          511,616          552,546          596,749            636,124

Registered
  Scotia McLeod MF Portfolio (Anthony)         71,700           76,719           82,089           87,835             93,984
  Scotia McLeod MF Portfolio (Deborah)        109,068          120,436          132,601          145,616            157,708
  Subtotal                                    180,768          197,155          214,690          233,452            251,692

Lifestyle
   Anthony & Deborah's House (Joint)          327,455          334,004          340,685          347,498            354,448
   Subtotal                                   327,455          334,004          340,685          347,498            354,448

Life Insurance
   Anthony Klient                               4,630            4,630            4,630            4,630              4,630
   Subtotal                                     4,630            4,630            4,630            4,630              4,630

Surplus/(Deficit)                                     0                0                0                0                  0

Total                                         986,572        1,047,406        1,112,550        1,182,330          1,246,894




August 19, 2012                                                                                              Page 28 of 128
         Net Wealth Accumulation (Proposed)
         The following graph illustrates how each component of your net worth is projected to
         increase/decrease prior to retirement. These projections are based on the strategies and
         assumptions currently in place and also the ones we are proposing for your plan.

               $1,200,000                                                         Lifestyle Assets
                                                                                  Business Assets
                                                                                  RRSP Assets
                                                                                  Pension Assets
               $1,000,000                                                         Investment Assets
                                                                                  Life Insurance CSV
                                                                                  Accumulated Surplus/ Deficit
                                                                                  Assets Subject to Deferred Tax †
                $800,000
Amount




                $600,000




                $400,000




                $200,000




                      $0
                            2009     2010        2011        2012         2013

                                                 Y ear



                                            † Taxes due upon sale or redemption
         Note that any life insurance assets represent the cash surrender value (CSV) of life insurance
         policies included in your plan. Also, Lifestyle Assets may include your house, cottage, automobiles
         or any other personal assets.
         Your projected net worth at Deborah's retirement in the year 2014 is $1,246,894.




         August 19, 2012                                                                              Page 29 of 128
Net Wealth Accumulation (Proposed)
The following report illustrates how each component of your net worth is projected to increase/decrease prior to retirement. These
projections are based on the strategies and assumptions currently in place and also the ones we are proposing for your plan.

                     Lifestyle   Business                   Pension       Investment Life Insurance   Accumulated       Total Net    Assets Subject
   Year    Age(s)     Assets      Assets    RRSP Assets     Assets          Assets         CSV       Surplus/ Deficit    Worth      to Deferred Tax †
   2009      55/52       321,035          0     165,453               0       438,629          4,630                0       929,746           266,278
   2010      56/53       327,455          0     180,768               0       473,719          4,630                0       986,572           299,139
   2011      57/54       334,004          0     197,155               0       511,616          4,630                0     1,047,406           334,475
   2012      58/55       340,685          0     214,690               0       552,546          4,630                0     1,112,550           372,474
   2013      59/56       347,498          0     233,452               0       596,749          4,630                0     1,182,330           413,338
                                                          † Taxes due upon sale or redemption




August 19, 2012                                                                                                                         Page 30 of 128
Wealth Accumulation Savings (Proposed)
The following report illustrates the current savings to each component of your investments prior to retirement. This report illustrates the Net
savings; in other words, if more funds are withdrawn than saved, this amount will be a negative number. This includes both your current
savings and the proposed savings amounts.

                                                                                Investment                                                             Wealth
                   Lifestyle Net RRSP/RRIF Net Pension Net Investment Net          Assets          Business Net Business Assets   Life Insurance     Accumulated
  Year   Age(s)    Contributions Contributions Contributions Contributions     Reinvestments       Contributions  Reinvestments Net Contributions      Savings
  2009     55/52                0         3,600             0              0                   0                0               0                0            3,600
  2010     56/53                0         3,600             0              0                   0                0               0                0            3,600
  2011     57/54                0         3,600             0              0                   0                0               0                0            3,600
  2012     58/55                0         3,600             0              0                   0                0               0                0            3,600
  2013     59/56                0         3,600             0              0                   0                0               0                0            3,600




August 19, 2012                                                                                                                                      Page 31 of 128
         Pre-Retirement Net Worth Comparison
         The following graph illustrates a comparison of the projection of your net worth between your
         current and proposed plan prior to retirement.
         Plan A: Current Plan
         Plan B: Proposed Plan

                $1,600,000
                                Plan A: Total Net Worth
                $1,400,000      Plan B: Total Net Worth


                $1,200,000



                $1,000,000
Amount




                  $800,000



                  $600,000



                  $400,000



                  $200,000



                           $0
                                   09

                                   10

                                   11

                                   12

                                   13

                                   14

                                   15

                                   16

                                   17

                                   18

                                   20

                                   25

                                   30

                                   35

                                   40

                                   45

                                   46
                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                20

                                                             Year




         August 19, 2012                                                                 Page 32 of 128
                  Cash Flow Analysis




August 19, 2012                 Page 33 of 128
Cash Flow Overview
Cash flow management takes into account all sources of income and expenses.
The following diagram represents the many items that can represent a household’s cash flow.



          Lifestyle                          Taxes                             Debt
          Assets




         Business
         Assets                            Cash                             Expenses




        Investment                       Retirement                      Employment
        Assets                           Assets                          Income


Assets are a use of cash when they are purchased and a source of cash when they are sold.
Investment assets that produce income can provide a source of cash throughout their life. A liability
is a source of cash when it is incurred and a use of cash as it is paid off. Employment income is a
source of cash. Expenses and taxes are a use of cash. In short, cash inflows are from income,
debt, and the sale of assets. Cash outflows pay expenses, reduce debt, and purchase assets.




August 19, 2012                                                                       Page 34 of 128
Cash Flow Details (Current) – 2009
This cash flow report outlines your current sources of income and expenses. Your income includes
your employment income, investment income and other sources. Your expenses include your day-
to-day expenses, debt payments including your mortgage, and your current investment
contributions including insurance premiums. If you have accurately provided a list of all these items,
this report will give you an indication how much money you currently have available to allocate
towards your financial objectives.
                                                          Anthony       Deborah       Total
        Cash Inflows
        Employment Income
         Salary                                               31,312       43,046       74,357

        Total Cash Inflows                                    31,312       43,046       74,357
        Cash Outflows
        Lifestyle Expenses
         Regular                                              54,068            0       54,068
         Surplus                                                   0        3,197        3,197
         Total                                                54,068        3,197       57,264

        Taxes
         Adjusted Federal Tax                                  2,458        4,727        7,185
         Provincial Basic Tax                                  2,194        3,222        5,416
         Total Tax                                             3,792        7,171       10,963

        Employment/Business Expenses
         EI Premiums                                             564          764        1,327

        Miscellaneous Expenses
         Charitable Donations                                  1,254              0      1,254
         Life Insurance Premiums                                 214              0        214
         Total                                                 1,469              0      1,469

        Registered Contributions
         CPP/QPP Contributions - Employment                    1,377        1,958        3,334

        Total Cash Outflows                                   61,269       13,088       74,357

        Current Surplus/(Deficit)                             -29,957      29,957             0
        Previous Surplus/(Deficit)                                  0           0             0
        Funds to other members                                      0      29,957             0
        Funds from other members                               29,957           0             0
        Ending Surplus/(Deficit)                                    0           0             0




August 19, 2012                                                                         Page 35 of 128
Cash Flow Projection (Current) – 2010 to 2014
This cash flow projection illustrates your inflows and outflows based on your current income levels
(employment and investment), saving and spending habits.
                                              2010       2011       2012       2013        2014
Cash Inflows
Employment Income
 Salary                                         76,588     78,886     82,568      59,466          0

Investment Income
 From Assets
  Capital Gains                                      0          0          0       8,721     38,222

Pension Income
 CPP/QPP                                             0          0          0          0       8,134

Received Capital
 Adjusted Cost Base                                  0          0          0       5,744     22,227

Total Cash Inflows                              76,588     78,886     82,568      73,931     68,582

Cash Outflows
Lifestyle Expenses
 Regular                                        55,690     57,360     59,081      60,854     66,888
 Surplus                                         3,314      3,436      4,523           0          0
 Total                                          59,004     60,796     63,605      60,854     66,888

Taxes
 Adjusted Federal Tax                            7,398      7,618      8,034       4,986         261
 Provincial Basic Tax                            5,556      5,700      5,928       4,547       1,648
 Provincial Tax Reduction                        (873)      (900)      (927)       (954)     (1,660)
 Total Tax                                      11,266     11,578     12,164       7,783         382

Employment/Business Expenses
 EI Premiums                                     1,367      1,408      1,474       1,070          0

Miscellaneous Expenses
 Charitable Donations                            1,292      1,331      1,371       1,412      1,091
 Life Insurance Premiums                           214        214        214         214        214
 Total                                           1,506      1,545      1,585       1,626      1,305

Registered Contributions
 CPP/QPP Contributions - Employment              3,445      3,558      3,741       2,597          0

Total Cash Outflows                             76,588     78,886     82,568      73,930     68,575

Current Surplus/(Deficit)                            0          0          0          0           7
Previous Surplus/(Deficit)                           0          0          0          0           0
Ending Surplus/(Deficit)                             0          0          0          0           8




August 19, 2012                                                                       Page 36 of 128
         Income and Expense Summary Graph (Current)
         This graph shows you the breakdown of all of your income sources prior to retirement. It also sets
         your total income against your total expenses. Total expenses include day-to-day expenses, semi-
         regular expenses (such as vacations), lump-sum expenses and taxes.
         If your expenses exceed your income, your total expenses line will be above the stacked income
         bar graph. If this occurs, you will either need to redeem investments, borrow or reduce your
         expenses to meet your cash flow needs.

              $90,000                                                          Employment & Business Income
                                                                               Pension Income
                                                                               RRIF Income
              $80,000
                                                                               Investment Income
                                                                               Misc. Income

              $70,000
                                                                               Total Expenses



              $60,000




              $50,000
Amount




              $40,000




              $30,000




              $20,000




              $10,000




                  $0
                           2009         2010           2011         2012

                                               Y ear



         In your current plan, the analysis indicates that you will begin to experience significant cash flow
         shortfalls in the year 2041.




         August 19, 2012                                                                        Page 37 of 128
Income and Expense Summary Report (Current)
This report shows you the breakdown of all of your income sources prior to retirement. It also displays the costs of expenses and taxes.

                                                                                            Employment &
                   Pension         RRIF       Defined Benefit   LIF/LRIF       Investment     Business       Tax Free        Misc.         Expenses
  Year   Age(s)    Income        Income       Pension Income    Income           Income        Income         Income        Income       (Except Taxes) Total Tax
  2009     55/52             0            0                 0              0            0           74,357              0            0            63,394    10,963
  2010     56/53             0            0                 0              0            0           76,588              0            0            65,322    11,266
  2011     57/54             0            0                 0              0            0           78,886              0            0            67,308    11,578
  2012     58/55             0            0                 0              0            0           82,568              0            0            70,404    12,164




August 19, 2012                                                                                                                                  Page 38 of 128
Cash Flow Management Details (Current)
The following report illustrates many of the main cash inflow and outflow items prior to retirement. These projections are based on the
strategies and assumptions you currently have in place.

                                   Employment &
                    Total Funds      Business     Discretionary                 Net Funds Discretionary     Current        Accumulated        Total Net
  Year    Age(s)     Received        Expenses       Savings        Total Tax    Received    Expenses     Surplus/ Deficit Surplus/ Deficit     Worth
  2009      55/52         74,357            4,662              0       10,963        58,733       58,733                0                0        904,523
  2010      56/53         76,588            4,812              0       11,266        60,510       60,510                0                0        955,981
  2011      57/54         78,886            4,967              0       11,578        62,341       62,341                0                0      1,011,081
  2012      58/55         82,568            5,215              0       12,164        65,189       65,189                0                0      1,070,101




August 19, 2012                                                                                                                              Page 39 of 128
Cash Flow Details (Proposed) – 2009
This cash flow report outlines your sources of income and expenses based on proposed changes to
your plan.
                                                      Anthony      Deborah       Total
        Cash Inflows
        Employment Income
         Salary                                           31,312      43,046       74,357

        Total Cash Inflows                                31,312      43,046       74,357
        Cash Outflows
        Lifestyle Expenses
         Regular                                          54,068           0       54,068
         Surplus                                               0         718          718
         Total                                            54,068         718       54,786

        Taxes
         Adjusted Federal Tax                              2,458       3,935        6,393
         Provincial Basic Tax                              2,194       2,892        5,086
         Total Tax                                         3,792       6,049        9,841

        Employment/Business Expenses
         EI Premiums                                         564         764        1,327

        Miscellaneous Expenses
         Charitable Donations                              1,254             0      1,254
         Life Insurance Premiums                             214             0        214
         Total                                             1,469             0      1,469

        Registered Contributions
         CPP/QPP Contributions - Employment                1,377       1,958        3,334
         RRSP Contributions - Self                             0       3,600        3,600
         Total                                             1,377       5,558        6,934

        Total Cash Outflows                               61,269      13,088       74,357

        Current Surplus/(Deficit)                        -29,957      29,957             0
        Previous Surplus/(Deficit)                             0           0             0
        Funds to other members                                 0      29,957             0
        Funds from other members                          29,957           0             0
        Ending Surplus/(Deficit)                               0           0             0




August 19, 2012                                                                    Page 40 of 128
Cash Flow Projection (Proposed) – 2010 to 2014
This cash flow projection illustrates your inflows and outflows based on proposed changes to your
plan. Items that may affect your overall cash flow situation include changes in current or future
employment, investment income, savings and spending habits.
                                             2010       2011       2012       2013        2014
Cash Inflows
Employment Income
 Salary                                        76,588     78,886     82,568     83,690      61,250

Investment Income
 From Assets
  Capital Gains                                     0          0          0          0       5,289

Pension Income
 CPP/QPP                                            0          0          0          0       8,134

Received Capital
 Adjusted Cost Base                                 0          0          0          0       3,076

Total Cash Inflows                             76,588     78,886     82,568     83,690      77,749

Cash Outflows
Lifestyle Expenses
 Regular                                       55,690     57,360     59,081     60,854      62,679
 Surplus                                          836        957      2,045      1,211           0
 Total                                         56,525     58,317     61,126     62,064      62,679

Taxes
 Adjusted Federal Tax                           6,606      6,826      7,242      7,285       6,077
 Provincial Basic Tax                           5,226      5,371      5,599      5,672       5,033
 Provincial Tax Reduction                       (873)      (900)      (927)      (954)       (983)
 Total Tax                                     10,144     10,456     11,042     11,109       9,403

Employment/Business Expenses
 EI Premiums                                    1,367      1,408      1,474      1,494       1,102

Miscellaneous Expenses
 Charitable Donations                           1,292      1,331      1,371      1,412       1,454
 Life Insurance Premiums                          214        214        214        214         214
 Total                                          1,506      1,545      1,585      1,626       1,668

Registered Contributions
 CPP/QPP Contributions - Employment             3,445      3,558      3,741      3,796       1,096
 RRSP Contributions - Self                      3,600      3,600      3,600      3,600       1,800
 Total                                          7,045      7,158      7,341      7,396       2,896

Total Cash Outflows                            76,588     78,886     82,568     83,690      77,749


Current Surplus/(Deficit)                           0          0          0          0           0
Previous Surplus/(Deficit)                          0          0          0          0           0
Ending Surplus/(Deficit)                            0          0          0          0           0




August 19, 2012                                                                      Page 41 of 128
         Income and Expense Summary Graph (Proposed)
         This graph shows you the breakdown of all of your income sources prior to retirement. It also sets
         your total income against your total expenses. Total expenses include day-to-day expenses, semi-
         regular expenses (such as vacations), lump sum expenses and taxes.
         If your expenses exceed your income, your total expenses line will be above the stacked income
         bar graph. If this occurs, you will either need to redeem investments, borrow or reduce your
         expenses to meet your cash flow needs.

              $90,000                                                          Employment & Business Income
                                                                               Pension Income
                                                                               RRIF Income
              $80,000
                                                                               Investment Income
                                                                               Misc. Income

              $70,000
                                                                               Total Expenses



              $60,000




              $50,000
Amount




              $40,000




              $30,000




              $20,000




              $10,000




                  $0
                           2009     2010       2011      2012       2013

                                              Y ear



         In our proposed plan, the analysis indicates that you will not experience any significant cash flow
         shortfalls throughout your lifetime.




         August 19, 2012                                                                        Page 42 of 128
Income and Expense Summary Report (Proposed)
This report shows you the breakdown of all of your income sources prior to retirement. It also displays the costs of expenses and taxes.

                                                                                            Employment &
                   Pension         RRIF       Defined Benefit   LIF/LRIF       Investment     Business       Tax Free        Misc.         Expenses
  Year   Age(s)    Income        Income       Pension Income    Income           Income        Income         Income        Income       (Except Taxes) Total Tax
  2009     55/52             0            0                 0              0            0           74,357              0            0            64,516     9,841
  2010     56/53             0            0                 0              0            0           76,588              0            0            66,444    10,144
  2011     57/54             0            0                 0              0            0           78,886              0            0            68,429    10,456
  2012     58/55             0            0                 0              0            0           82,568              0            0            71,526    11,042
  2013     59/56             0            0                 0              0            0           83,690              0            0            72,581    11,109




August 19, 2012                                                                                                                                  Page 43 of 128
Cash Flow Management Details (Proposed)
The following report illustrates many of the main cash inflow and outflow items prior to retirement. These projections are based on the
strategies and assumptions currently in place and also the ones we are proposing for your plan.

                                   Employment &
                    Total Funds      Business     Discretionary                  Net Funds Discretionary     Current        Accumulated       Total Net
  Year    Age(s)     Received        Expenses       Savings        Total Tax     Received    Expenses     Surplus/ Deficit Surplus/ Deficit    Worth
  2009      55/52         74,357            4,662          3,600         9,841        56,254       56,254                0                0       929,746
  2010      56/53         76,588            4,812          3,600       10,144         58,032       58,032                0                0       986,572
  2011      57/54         78,886            4,967          3,600       10,456         59,862       59,862                0                0     1,047,406
  2012      58/55         82,568            5,215          3,600       11,042         62,711       62,711                0                0     1,112,550
  2013      59/56         83,690            5,290          3,600       11,109         63,690       63,690                0                0     1,182,330




August 19, 2012                                                                                                                         Page 44 of 128
             Income Tax Planning




August 19, 2012             Page 45 of 128
Income Tax Overview
What is tax planning?
Tax planning usually involves strategies for minimizing your current and future years income tax
liability. This can be done through a variety of strategies to defer income, maximize deductions and
deductible expenses for a particular year, and selecting tax-advantaged investments.

Selecting investments from a tax perspective
Investment tax planning focuses on the income tax implications of your investment selections. You
should understand how the different returns of the investments you are considering are taxed
before finalizing your asset allocation decisions. For example, corporate and government bonds
generate ordinary income that is taxed at your marginal (top) tax bracket. The stock of many large,
established companies such as banks and utilities pay regular dividends. Dividends from Canadian
corporations are eligible for a dividend tax credit, which results in this type of income being taxed at
a more favourable rate than ordinary income. Many growth companies such as technology firms
pay little or no dividends as they reinvest all their earnings. Most stock is owned in the hope that it
will increase in value over time. The increase in value is called a capital gain and only half of the
gain is included when calculating taxable income.
The timing of when you receive the income is also an important consideration. Bond income and
dividends are typically taxed in the year you receive the income. The increase in the value of a
stock (capital gain) is generally taxed when the stock is sold. This should be taken into
consideration if you decide to make a major shift in your investments that requires the sale of a
substantial amount of highly appreciated assets. The investment strategies of mutual funds should
also be considered from a tax perspective. Some funds adopt a buy and hold strategy that will
minimize the tax generated. Other funds regularly buy and sell investments triggering taxes even if
you do not make any changes to your investments.
Additionally, where you are saving for retirement, you may choose to invest in tax-deductible and
tax-deferred vehicles such as Registered Retirement Savings Plans (RRSPs).
The process of selecting investments should not be made based solely on the tax implications.
Each investment choice may have their drawbacks. In other words, if your tax objective is to select
tax-favourable investments, it should be consistent with your return rate expectation and risk
tolerance, overall goals and time horizon.




August 19, 2012                                                                          Page 46 of 128
         Income Sources & Total Tax (Current)
         This graph illustrates your total income from all sources and your total income tax, which is
         comprised of both federal and provincial taxes and Alternative Minimum Tax (AMT), if applicable.

              $180,000                                                                                        Employment & Business Income
                                                                                                              Government Benefits
                                                                                                              RRSP Income
              $160,000
                                                                                                              Pension Income
                                                                                                              Investment Income
                                                                                                              Misc. Income
              $140,000
                                                                                                              Total Tax


              $120,000




              $100,000
Amount




               $80,000




               $60,000




               $40,000




               $20,000




                   $0
                         2009 2012   2015   2018   2021   2024   2027 2030   2033   2036 2039   2042   2045

                                                                 Y ear




         August 19, 2012                                                                                                       Page 47 of 128
Projected Income Tax Details for Anthony (Current)
Income items in this report are differentiated to recognize the different taxation that applies to
interest, dividends and capital gains. The calculation of federal and provincial tax and Alternative
Minimum Tax (if applicable) is included in this analysis.
                                                2009        2010        2011        2012        2013
Regular Tax Calculation
Calculation of Total Income
  Employment                                     $31,312     $32,251     $33,218     $35,531      $35,241
  Investment
     Capital Gains                                    $0          $0          $0          $0       $2,180
  Total Income                        (150)      $31,312     $32,251     $33,218     $35,531      $37,422

Deductions from Total Income
  Total                                                $0          $0          $0          $0          $0

Net Income                            (236)      $31,312     $32,251     $33,218     $35,531      $37,422

Deductions from Net Income
  Total                                                $0          $0          $0          $0          $0

Taxable Income                        (260)      $31,312     $32,251     $33,218     $35,531      $37,422


Regular Federal Tax
Calculations
Federal Tax on Taxable Income                     $4,853      $4,999      $5,149      $5,507       $5,800

Tax Credits (Non-Refundable)
  Personal Credit                     (300)       $1,593      $1,641      $1,690      $1,741       $1,793
  Canada Employment Credit                          $164        $169        $174        $180         $185
  CPP/QPP (employment)                (308)         $213        $221        $228        $246         $244
  Employment Insurance                (312)          $87         $90         $93         $99          $98
  Charity Credit                    (346,348)       $337        $348        $359        $371         $382
  Total                                           $2,395      $2,469      $2,544      $2,636       $2,703

Regular Federal Tax (A)               (406)       $2,458      $2,530      $2,605      $2,871       $3,098


Alternative Minimum Tax
Minimum Federal Tax (B)                                $0          $0          $0          $0          $0


Total Tax Calculation
  Regular Federal Tax (A)                         $2,458      $2,530      $2,605      $2,871       $3,098
  Minimum Federal Tax (B)                             $0          $0          $0          $0           $0
  Federal Tax is the greater
    of (A) and (B)                                $2,458      $2,530      $2,605      $2,871       $3,098

  Federal tax                         (417)       $2,458      $2,530      $2,605      $2,871       $3,098
  Federal surtax                      (419)           $0          $0          $0          $0           $0
  Net Federal Tax                     (420)       $2,458      $2,530      $2,605      $2,871       $3,098


Ontario Income Tax
  Total                                           $1,334      $1,364      $1,396      $1,502       $1,678


Summary
  Total Tax                           (435)       $3,792      $3,895      $4,000      $4,373       $4,776
  Income after Tax                               $27,519     $28,356     $29,218     $31,158      $34,826
Provincial Tax Bracket                            6.05%       6.05%       6.05%       6.05%        6.05%
Federal Tax Bracket                              15.50%      15.50%      15.50%      15.50%       15.50%
Effective Marginal Tax Rate                      21.55%      21.55%      21.55%      21.55%       27.55%

August 19, 2012                                                                            Page 48 of 128
Projected Income Tax Details for Deborah (Current)
Income items in this report are differentiated to recognize the different taxation that applies to
interest, dividends and capital gains. The calculation of federal and provincial tax and Alternative
Minimum Tax (if applicable) is included in this analysis.
                                               2009        2010        2011        2012        2013
Regular Tax Calculation
Calculation of Total Income
  Employment                                    $43,046     $44,337     $45,667     $47,037      $24,224
  Investment
     Capital Gains                                   $0          $0          $0          $0       $2,180
  Total Income                       (150)      $43,046     $44,337     $45,667     $47,037      $26,404

Deductions from Total Income
  Total                                               $0          $0          $0          $0          $0

Net Income                           (236)      $43,046     $44,337     $45,667     $47,037      $26,404

Deductions from Net Income
  Total                                               $0          $0          $0          $0          $0

Taxable Income                       (260)      $43,046     $44,337     $45,667     $47,037      $26,404


Regular Federal Tax
Calculations
Federal Tax on Taxable Income                    $6,906      $7,113      $7,327      $7,547       $4,093

Tax Credits (Non-Refundable)
  Personal Credit                    (300)       $1,593      $1,641      $1,690      $1,741       $1,793
  Canada Employment Credit                         $164        $169        $174        $180         $185
  CPP/QPP (employment)               (308)         $303        $313        $324        $334         $159
  Employment Insurance               (312)         $118        $122        $126        $129          $68
  Total                                          $2,179      $2,246      $2,314      $2,384       $2,205

Regular Federal Tax (A)              (406)       $4,727      $4,868      $5,013      $5,163       $1,888


Alternative Minimum Tax
Minimum Federal Tax (B)                               $0          $0          $0          $0          $0


Total Tax Calculation
  Regular Federal Tax (A)                        $4,727      $4,868      $5,013      $5,163       $1,888
  Minimum Federal Tax (B)                            $0          $0          $0          $0           $0
  Federal Tax is the greater
    of (A) and (B)                               $4,727      $4,868      $5,013      $5,163       $1,888

  Federal tax                        (417)       $4,727      $4,868      $5,013      $5,163       $1,888
  Federal surtax                     (419)           $0          $0          $0          $0           $0
  Net Federal Tax                    (420)       $4,727      $4,868      $5,013      $5,163       $1,888


Ontario Income Tax
  Total                                          $2,444      $2,503      $2,565      $2,628       $1,119


Summary
  Total Tax                          (435)       $7,171      $7,371      $7,578      $7,790       $3,007
  Income after Tax                              $35,875     $36,966     $38,089     $39,247      $25,578
Provincial Tax Bracket                           9.15%       9.15%       9.15%       9.15%        6.05%
Federal Tax Bracket                             22.00%      22.00%      22.00%      22.00%       15.50%
Effective Marginal Tax Rate                     31.15%      31.15%      31.15%      31.15%       21.55%



August 19, 2012                                                                           Page 49 of 128
         Income Sources & Total Tax (Proposed)
         This graph illustrates your total income from all sources and your total income tax, which is
         comprised of both federal and provincial taxes and Alternative Minimum Tax (AMT), if applicable.

              $220,000                                                                                        Employment & Business Income
                                                                                                              Government Benefits
              $200,000                                                                                        RRSP Income
                                                                                                              Pension Income
                                                                                                              Investment Income
              $180,000
                                                                                                              Misc. Income
                                                                                                              Total Tax
              $160,000



              $140,000



              $120,000
Amount




              $100,000



               $80,000



               $60,000



               $40,000



               $20,000



                   $0
                         2009 2012   2015   2018   2021   2024   2027 2030   2033   2036 2039   2042   2045

                                                                 Y ear




         August 19, 2012                                                                                                       Page 50 of 128
Projected Income Tax Details for Anthony (Proposed)
Income items in this report are differentiated to recognize the different taxation that applies to
interest, dividends and capital gains. The calculation of federal and provincial tax and Alternative
Minimum Tax (if applicable) is included in this analysis.
                                                2009        2010        2011        2012        2013
Regular Tax Calculation
Calculation of Total Income
  Employment                                     $31,312     $32,251     $33,218     $35,531      $35,241
  Total Income                        (150)      $31,312     $32,251     $33,218     $35,531      $35,241

Deductions from Total Income
  Total                                                $0          $0          $0          $0          $0

Net Income                            (236)      $31,312     $32,251     $33,218     $35,531      $35,241

Deductions from Net Income
  Total                                                $0          $0          $0          $0          $0

Taxable Income                        (260)      $31,312     $32,251     $33,218     $35,531      $35,241


Regular Federal Tax
Calculations
Federal Tax on Taxable Income                     $4,853      $4,999      $5,149      $5,507       $5,462

Tax Credits (Non-Refundable)
  Personal Credit                     (300)       $1,593      $1,641      $1,690      $1,741       $1,793
  Canada Employment Credit                          $164        $169        $174        $180         $185
  CPP/QPP (employment)                (308)         $213        $221        $228        $246         $244
  Employment Insurance                (312)          $87         $90         $93         $99          $98
  Charity Credit                    (346,348)       $337        $348        $359        $371         $382
  Total                                           $2,395      $2,469      $2,544      $2,636       $2,703

Regular Federal Tax (A)               (406)       $2,458      $2,530      $2,605      $2,871       $2,760


Alternative Minimum Tax
Minimum Federal Tax (B)                                $0          $0          $0          $0          $0


Total Tax Calculation
  Regular Federal Tax (A)                         $2,458      $2,530      $2,605      $2,871       $2,760
  Minimum Federal Tax (B)                             $0          $0          $0          $0           $0
  Federal Tax is the greater
    of (A) and (B)                                $2,458      $2,530      $2,605      $2,871       $2,760

  Federal tax                         (417)       $2,458      $2,530      $2,605      $2,871       $2,760
  Federal surtax                      (419)           $0          $0          $0          $0           $0
  Net Federal Tax                     (420)       $2,458      $2,530      $2,605      $2,871       $2,760


Ontario Income Tax
  Total                                           $1,334      $1,364      $1,396      $1,502       $1,461


Summary
  Total Tax                           (435)       $3,792      $3,895      $4,000      $4,373       $4,221
  Income after Tax                               $27,519     $28,356     $29,218     $31,158      $31,020
Provincial Tax Bracket                            6.05%       6.05%       6.05%       6.05%        6.05%
Federal Tax Bracket                              15.50%      15.50%      15.50%      15.50%       15.50%
Effective Marginal Tax Rate                      21.55%      21.55%      21.55%      21.55%       21.55%




August 19, 2012                                                                            Page 51 of 128
Projected Income Tax Details for Deborah (Proposed)
Income items in this report are differentiated to recognize the different taxation that applies to
interest, dividends and capital gains. The calculation of federal and provincial tax and Alternative
Minimum Tax (if applicable) is included in this analysis.
                                               2009        2010        2011        2012        2013
Regular Tax Calculation
Calculation of Total Income
  Employment                                    $43,046     $44,337     $45,667     $47,037      $48,448
  Total Income                       (150)      $43,046     $44,337     $45,667     $47,037      $48,448

Deductions from Total Income
  RRSP Contributions                             $3,600      $3,600      $3,600      $3,600       $3,600
  Total                                          $3,600      $3,600      $3,600      $3,600       $3,600

Net Income                           (236)      $39,446     $40,737     $42,067     $43,437      $44,848

Deductions from Net Income
  Total                                               $0          $0          $0          $0          $0

Taxable Income                       (260)      $39,446     $40,737     $42,067     $43,437      $44,848


Regular Federal Tax
Calculations
Federal Tax on Taxable Income                    $6,114      $6,321      $6,535      $6,755       $6,981

Tax Credits (Non-Refundable)
  Personal Credit                    (300)       $1,593      $1,641      $1,690      $1,741       $1,793
  Canada Employment Credit                         $164        $169        $174        $180         $185
  CPP/QPP (employment)               (308)         $303        $313        $324        $334         $345
  Employment Insurance               (312)         $118        $122        $126        $129         $133
  Total                                          $2,179      $2,246      $2,314      $2,384       $2,456

Regular Federal Tax (A)              (406)       $3,935      $4,076      $4,221      $4,371       $4,525


Alternative Minimum Tax
Minimum Federal Tax (B)                               $0          $0          $0          $0          $0


Total Tax Calculation
  Regular Federal Tax (A)                        $3,935      $4,076      $4,221      $4,371       $4,525
  Minimum Federal Tax (B)                            $0          $0          $0          $0           $0
  Federal Tax is the greater
    of (A) and (B)                               $3,935      $4,076      $4,221      $4,371       $4,525

  Federal tax                        (417)       $3,935      $4,076      $4,221      $4,371       $4,525
  Federal surtax                     (419)           $0          $0          $0          $0           $0
  Net Federal Tax                    (420)       $3,935      $4,076      $4,221      $4,371       $4,525


Ontario Income Tax
  Total                                          $2,114      $2,174      $2,235      $2,298       $2,363


Summary
  Total Tax                          (435)       $6,049      $6,250      $6,456      $6,669       $6,888
  Income after Tax                              $36,996     $38,087     $39,211     $40,368      $41,560
Provincial Tax Bracket                           9.15%       9.15%       9.15%       9.15%        9.15%
Federal Tax Bracket                             22.00%      22.00%      22.00%      22.00%       22.00%
Effective Marginal Tax Rate                     31.15%      31.15%      31.15%      31.15%       31.15%




August 19, 2012                                                                           Page 52 of 128
         Total Income & Total Tax Comparison
         This graph provides a comparison of your total income and total taxes between your current plan
         and our proposed plan.
         Plan A: Current Plan
         Plan B: Proposed Plan


                $220,000
                                   Plan A: Total Income
                $200,000
                                   Plan B: Total Income
                $180,000           Plan A: Total Tax
                                   Plan B: Total Tax
                $160,000

                $140,000
Amount




                $120,000

                $100,000

                 $80,000

                 $60,000

                 $40,000

                 $20,000

                      $0
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         August 19, 2012                                                                                                       Page 53 of 128
Total Income & Total Tax Comparison
This report provides a comparison of your total income and total taxes between your current plan
and our proposed plan. Total income includes income from all sources. Total tax includes your
federal and provincial tax. It may also include Alternative Minimum Tax (AMT), if applicable.


Plan A: Current Plan
Plan B: Proposed Plan

                                      Total Income               Total Tax
                   Year   Age(s)   Plan A       Plan B      Plan A       Plan B
                   2009    55/52      74,357       74,357      10,963        9,841
                   2010    56/53      76,588       76,588      11,266       10,144
                   2011    57/54      78,886       78,886      11,578       10,456
                   2012    58/55      82,568       82,568      12,164       11,042
                   2013    59/56      68,186       83,690       7,783       11,109
                   2014    60/57      46,355       74,673         382        9,403
                   2015    61/58      49,951       49,957         791          792
                   2016    62/59      53,193       53,193       1,023        1,023
                   2017    63/60      56,966       56,966       1,117        1,117
                   2018    64/61      61,369       61,369       1,825        1,825
                   2020    66/63      69,700       69,700       2,143        2,143
                   2025    71/68      87,731       87,731       2,845        2,845
                   2030    76/73     113,691      117,006       8,350       10,372
                   2035    81/78     133,151      135,947       9,657       11,527
                   2040    86/83     172,025      157,867      24,432       12,814
                   2045    91/88      48,258      195,134         910       27,424
                   2046    92/89      49,706      201,018       1,007       28,025




August 19, 2012                                                                      Page 54 of 128
            Average & Marginal Tax Comparison
            Plan A: Current Plan
            Plan B: Proposed Plan
            The following graph compares marginal tax rates between your current plan and our proposed plan.
            Your marginal tax rate is the top tax rate that you pay and applies to any additional income you may
            receive.
                 32%                                                                                                                           Plan A: Marginal Tax Rate
                 30%                                                                                                                           Plan B: Marginal Tax Rate

                 28%

                 26%
Amount




                 24%


                 22%

                 20%

                 18%

                 16%

                 14%
                         09

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                                                                              Y ear



            The following graph compares average tax rates between your current plan and our proposed plan.
            Your average tax rate is your total tax divided by your total income.
                       20%
                                    Plan A: Average Income Tax Rate
                       18%
                                    Plan B: Average Income Tax Rate
                       16%

                       14%

                       12%
   Amount




                       10%

                       8%

                       6%

                       4%

                       2%

                       0%
                               09


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                                                                                                                              20


                                                                                                                                         20


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                                                                                                          Y ear




            August 19, 2012                                                                                                                                     Page 55 of 128
Average & Marginal Tax Comparison
The following report compares marginal and average tax rates between your current plan and our
proposed plan. Your average tax rate is your total tax divided by your total income. Your marginal
tax rate is the top tax rate that you pay and it applies to any additional income you may receive.
The values below are expressed as percentages and include both federal and provincial taxes.
Plan A: Current Plan
Plan B: Proposed Plan
                                   Average Income Tax Rate    Marginal Tax Rate
                   Year   Age(s)     Plan A      Plan B      Plan A       Plan B
                   2009    55/52            15          13          26             26
                   2010    56/53            15          13          26             26
                   2011    57/54            15          13          26             26
                   2012    58/55            15          13          26             26
                   2013    59/56            12          13          25             26
                   2014    60/57             1          13          28             29
                   2015    61/58             3           3          22             22
                   2016    62/59             3           3          25             25
                   2017    63/60             3           3          22             22
                   2018    64/61             5           5          28             28
                   2019    65/62             4           4          28             28
                   2020    66/63             5           5          28             28
                   2021    67/64             5           5          31             31
                   2022    68/65             3           3          25             25
                   2023    69/66             4           4          28             28
                   2024    70/67             4           4          28             28
                   2025    71/68             5           5          28             28
                   2026    72/69             6           6          25             25
                   2027    73/70             6           6          25             25
                   2028    74/71             6           6          25             25
                   2029    75/72             8           9          22             22
                   2030    76/73             9          10          22             22
                   2031    77/74             9          10          22             22
                   2032    78/75             9          10          22             22
                   2033    79/76             9          10          22             34
                   2034    80/77             9          10          22             22
                   2035    81/78             9          10          22             22
                   2036    82/79             9          10          22             22
                   2037    83/80            11          10          23             22
                   2038    84/81            13          10          31             22
                   2040    86/83            14          10          31             22
                   2045    91/88             2          19          28             25
                   2046    92/89             2          19          15             25




August 19, 2012                                                                         Page 56 of 128
                  Retirement Planning




August 19, 2012                  Page 57 of 128
Retirement Planning Overview
Retirement planning is an integral part of your overall financial plan. Strategies should be designed
to suit your goals and comfort level as well as take advantage of tax saving opportunities. For any
plan to be effective, it is necessary to implement these strategies and to review your goals and
progress periodically.
The amount you will need in retirement depends on the age you plan to retire, your desired
retirement lifestyle, how long you expect to live and the rate of return that you expect to earn on
your investments. Canada Pension Plan (CPP), Old Age Security (OAS) and employer-sponsored
pension plans will probably provide a smaller percentage of what you will need than they did for
your parents. The most important aspect of projecting your future needs is estimating how much
you will have to save each year to produce the income you need to maintain your standard of living
after you stop working.

Pre-Retirement Considerations
Consider using one or more of the following strategies to maximize you retirement income:

Invest to earn a potentially higher rate of return on investments
In a retirement plan, assets that have the potential for significant growth over the long term should
be considered. It is important that your investment choices be consistent with the level of risk that
you are willing to assume. In addition, good financial planning must always take inflation into
account. If you disregard inflation, you may end up investing too conservatively. Together we can
determine a suitable mix of investments that meets your objectives, time frame, and risk tolerance.

Save more
It is hard to motivate yourself to save for retirement because it generally requires spending less
money now. You will have a much better chance of achieving your retirement goal if you maintain
(or even reduce) today's standard of living and save as much as you can. Retirement planners
generally suggest committing 10% to 15% of your gross earnings, or earnings before tax, to savings
for retirement.

Spend less during retirement
Many retirement experts estimate that you need between 70% and 80% of your pre-retirement
income to maintain your standard of living during retirement. This may or may not be appropriate for
you, as everyone’s goals are different. Some of your expenses will increase and others will
decrease; you may spend less on business clothing and lunches, but more on vacations. Also
consider the differences in your living expenses for early and later phases of retirement. For
example, you’ll likely spend more on travel when you’re 65 than when you are 85.

Retire at a later age
The effect of retiring later is two-fold. Not only will you have contributed to your retirement plan for
more years but also your salary is typically higher at the end of your career. Retiring early means
losing retirement plan contributions based on those higher income amounts. This will normally
result in a smaller pension. Another effect of retiring early is being retired longer, and being
dependent on your investments for a greater number of years.



August 19, 2012                                                                          Page 58 of 128
Maximize Contributions to Registered Retirement Plans
Retirement accounts such as RRSPs and Defined Contribution Pension Plans have a dual
advantage: contributions are deducted from current taxable income, and the account itself grows on
a tax-deferred basis. This tax deferral allows your assets to grow at a faster rate than comparable
taxable assets, and makes this type of account ideal for retirement savings. Below is a partial list of
retirement accounts that may be available to you.

   Registered Retirement Savings Plan (RRSP)
   An RRSP is a voluntary retirement savings plan that may allow you to defer tax. The lesser of
   18% of your earned income from the previous year or $19,000 (for 2007) can be contributed
   annually, subject also to certain other limitations, and claimed as an income tax deduction on
   your return. A variety of investment options, such as mutual funds, GICs, stocks, bonds, etc.,
   are available for you to invest in. Funds withdrawn from the plan are taxed as income in the year
   you redeem them. An RRSP must be converted into a Registered Retirement Income Fund
   (RRIF) by the end of the year in which you turn 71.

   Spousal RRSPs
   Spousal RRSPs are essentially the same as RRSPs, except that you make contributions into an
   RRSP in your spouse’s name (annuitant), while you are able to claim the tax deduction for the
   contribution. The contribution limits for Spousal RRSPs are the same as the RRSP limits less
   any amount that the contributor spouse has used for him or herself. Spousal RRSPs allow the
   higher income spouse to obtain the much needed tax deduction while at the same time ensuring
   that the lower income spouse has an amount set aside from which to draw a retirement income.
   This allows you to take advantage of a technique called "income splitting".
   There are four good reasons for contributing to a Spousal RRSP:
          To allow the spouse with the higher income to take the tax deduction
          To split income more evenly during retirement between you and your spouse and take
           advantage of the lower income tax brackets
          To remove funds from an RRSP at a lower tax rate prior to retirement, and
          In the case where you are over age 71 and no longer permitted to contribute to your own
           plan but your spouse is younger, you can make a contribution into a spousal RRSP and
           still obtain a tax deduction.
   The objective of this strategy is to provide both of you with similar retirement incomes and thus
   similar income tax rates. There are certain consequences if you contribute to a Spousal RRSP
   one year, and your spouse withdraws any funds within two years of a Spousal RRSP
   contribution. You as contributor will be taxed on the funds withdrawn, and not your spouse, who
   actually withdrew the money. You have the same investment options as with RRSPs, and you
   must convert it to a RRIF by the end of the year in which you turn 71.

   Locked-In Retirement Account (LIRA)
   A LIRA is a tax-sheltered investment where the proceeds originate from a Registered Pension
   Plan (RPP) and are transferred when you leave employment prior to retirement. These funds
   are considered ‘locked-in’ until you retire. Your investment options are similar to a regular
   RRSP, however, in a LIRA, you are required to keep the locked-in funds as if they were still in a
   pension plan, and therefore cannot withdraw the monies until retirement. Your funds grow tax-
   sheltered until you retire, at which time you can convert the LIRA into an income source, such
   as a LIF (Life Income Fund), LRIF (Locked-in Retirement Income Fund), or a Life Annuity.
   Conversion must occur by the end of the year in which you turn 71.


August 19, 2012                                                                         Page 59 of 128
   Registered Retirement Income Fund (RRIF)
   A RRIF is the natural extension of an RRSP. While an RRSP exists for the purpose of
   accumulating tax-sheltered funds for retirement, a RRIF exists for the purpose of making
   payouts to provide an income during retirement. Each year you must withdraw a minimum
   amount from the plan, and these proceeds are taxed as ordinary income to you including the
   earnings. There are no maximum limits to the amount that you can withdraw; it is therefore
   possible to deplete the entire plan prior to death.

   Life Income Fund (LIF)
   A LIF is a government-regulated plan that allows you flexibility in withdrawing locked-in pension
   funds. Similar to a RRIF you are required to withdraw a minimum amount annually. The same
   investment choices are available to you, thus allowing you to make the decisions on how the
   assets are managed. LIFs differ from RRIFs in that unlike a RRIF the government imposes
   limitations on the maximum amount that can be withdrawn in any one year. Depending on the
   province that your LIF is regulated in, you may be required to convert your LIF to a Life Annuity,
   thus ensuring that a regular income stream is available for as long as you live. Keep in mind that
   unless there are guarantees in place, a Life Annuity terminates when you die, leaving nothing to
   your heirs.

   Locked-In Retirement Income Fund (LRIF)
   LRIFs are similar to both RRIFs and LIFs, in that you are allowed to maintain full control of
   investment decisions. You are also required to withdraw a minimum amount each year. Similar
   to a LIF there are limitations on the maximum amount that can be withdrawn annually, however
   the primary difference is that you do not have to convert your LRIF to a Life Annuity at age 80; it
   can be held indefinitely. This provides you with added flexibility throughout your retirement, and
   also allows any remaining funds to be distributed to your heirs upon death. LRIFs are not
   available in all provinces.

   Defined Contribution Pension Plans
   Defined Contribution Plans operate very much like an RRSP; however, employers will frequently
   match contributions to encourage employee participation. For example, an employer may match
   $.50 on every $1.00 you contribute up to 5% of your salary. Both your contributions and your
   employer’s are accumulated in the plan and are used to purchase a retirement income, such as
   a LIF, LRIF, or Life Annuity.
In reviewing your retirement needs, accurate estimates of your expenses in retirement is the key
starting point. Many expenses in your pre-retirement period will end such as office parking,
business lunches, etc. On the other hand, other expenses may increase. Retirement may also
consist of an active period early on where travel and other leisure activities are the major new
expense items. The later part of retirement may include increased health care costs and reduced
leisure expenses.
Next, you need to determine how best to utilize your various income sources in retirement. The
following items need to be considered:

Retirement Considerations

Asset Allocation Review
As you enter retirement you should consider reviewing your asset allocation. Since your planning
time horizon is shorter than when you first started work, you need to balance your need to grow
your assets to keep pace with inflation, while preserving your investment capital, and providing
August 19, 2012                                                                        Page 60 of 128
income to meet your expense needs. It is quite likely that during retirement you may need to
supplement CPP, OAS and other pension plans with withdrawals from your investments. We should
take a close look at your portfolio to determine how and if it needs to be rebalanced.

Canada Pension Plan (CPP) Retirement Benefits
Upon retirement another decision is when to begin receiving CPP. Currently, you may begin taking
a reduced benefit as early as age 60, wait until you are eligible to receive your full benefit at age 65
or take the maximum benefit by waiting until age 70. At 60, for example, you get only 70% of what
you would have been eligible for had you started benefits at age 65. If you wait until age 70 you will
get 130% of your normal benefit. You should consider your life expectancy when making this
decision.

Old Age Security (OAS) Benefits
Starting at age 65 OAS provides you with a modest monthly pension, however, you must apply for it
in order to receive the benefits. Residence requirements must be met in order to be eligible.
However, your employment history is not a factor in determining eligibility, nor do you need to be
retired. Old Age Security benefits are considered taxable income to you, and if your income is
above a specified threshold, you may be required to repay part or all of the benefit. This repayment
is also referred to as the “OAS Clawback”.

Liquidation of Non-Cash Assets
You may have some non-cash assets such as real estate or other property that you plan to sell to
generate cash when you retire. Keep in mind that the ability to sell property and to obtain the value
you require will depend on market conditions at the time you wish to sell. Also, there may be fees
and tax consequences involved in such a transaction.

Which assets do I use first?
Your retirement assets may consist of both registered and non-registered assets. The decision on
how to redeem these assets may have a significant impact on your plan. This decision will impact
how long the funds will last and the tax implication during different stages of your retirement and at
your death. Generally, it is better to use non-registered assets first, and then registered assets such
as RRIFs. However, we should discuss these alternatives and review the situation annually to
determine what is best for your situation.




August 19, 2012                                                                          Page 61 of 128
         Needs vs. Abilities (Current)
         This graph illustrates your retirement needs and your ability to meet these objectives (in future
         dollars) based on your current retirement savings plan. These needs represent the after-tax amount
         and are based on your expected expenses during retirement.

                     $180,000
                                        Retirement Needs
                                        Uncapped Retirement Abilities
                     $160,000



                     $140,000



                     $120,000
Amount




                     $100,000



                      $80,000



                      $60,000



                      $40,000
                                 2013      2016      2019     2022      2025      2028      2031      2034   2037   2040     2045
                                                                                   Year



                                                     Retirement Goal Summary
                                                   Current       Amount (Under                               Additional
                             Retirement           Retirement      Funded) Over Current Monthly                Monthly
                                         1                                 2                                         3
                           Income Needs            Assets           Funded         Savings                   Savings
                                                                                                                         4
                                   $58,639              $537,080      ($676,252)            $0                       N/A
         1
             Projected annual needs (in today's dollars) in the first full year of retirement, after tax.
         2
             Amount represents the ending retirement surplus/deficit.
         3
          Estimated amount based on saving to Suggested Asset Mix. This field will be empty for goals that don't have a
         Suggested Asset Mix.
         4
             The mechanics of the plan make it impossible or impractical to calculate this number.
         The average expected rate of return for assets linked to your Retirement goal is 7.78%.


         August 19, 2012                                                                                               Page 62 of 128
Net Worth at Retirement (Current) – 2014
This net worth statement provides a snapshot of your projected net worth at the start of your
retirement.

                                              Anthony       Deborah       Joint       Total
         Non-Registered Assets
           Scotia McLeod Portfolio                                         600,085      600,085
           Total Non-Registered Assets                                     600,085      600,085

         Registered Assets
           Scotia McLeod MF Portfolio            87,835                                  87,835
           Scotia McLeod MF Portfolio                          78,827                    78,827
           Total Registered Assets               87,835        78,827                   166,662

         Lifestyle Assets
            Anthony & Deborah's House                                      347,498      347,498
            Total Lifestyle Assets                                         347,498      347,498

         Life Insurance Cash Value
            Anthony Klient                        4,630                                   4,630
            Total Life Insurance Cash Value       4,630                                   4,630

         Total Assets                            92,465        78,827      947,583    1,118,875

         Cash Flow Surplus                              0             0           0           0

         Total Net Worth                         92,465        78,827      947,583    1,118,875




August 19, 2012                                                                           Page 63 of 128
         Net Wealth Projection Graph (Current)
         The following graph illustrates how your net worth is projected to increase/decrease during your
         retirement. These projections are based on the strategies and assumptions you currently have in
         place in projecting your plan over your lifetime.

               $1,200,000                                                                                                    Lifestyle Assets
                                                                                                                             Business Assets
                                                                                                                             RRSP Assets
                                                                                                                             Pension Assets
               $1,000,000                                                                                                    Investment Assets
                                                                                                                             Life Insurance CSV
                                                                                                                             Accumulated Surplus/ Deficit
                                                                                                                             Assets Subject to Deferred Tax †
                $800,000
Amount




                $600,000




                $400,000




                $200,000




                      $0
                             14

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                            20

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                                              20

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                                                                20

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                                                                                                     20

                                                                                                           20

                                                                                                                 20

                                                                                                                       20




                                                                           Y ear



                                                                 † Taxes due upon sale or redemption
         Note that any life insurance assets represent the cash surrender value (CSV) of any life insurance
         policies included in your plan. Also, Lifestyle Assets may include your house, cottage, automobiles
         or any other personal assets.
         Your projected final net worth at the end of the plan, in the year 2046, is $123,059.




         August 19, 2012                                                                                                                         Page 64 of 128
Net Wealth Projection Report (Current)
The following report illustrates how each component of your net worth is projected to increase/decrease during your retirement. These
projections are based on the strategies and assumptions you currently have in place in projecting your plan over your lifetime.

                    Lifestyle   Business                   Pension      Investment Life Insurance   Accumulated       Total Net    Assets Subject
   Year   Age(s)     Assets      Assets    RRSP Assets     Assets         Assets         CSV       Surplus/ Deficit    Worth      to Deferred Tax †
   2014     60/57       354,448          0     178,329              0       587,643          4,630                8     1,125,057           364,112
   2015     61/58       361,537          0     190,812              0       572,775          4,630                3     1,129,757           379,695
   2016     62/59       368,768          0     204,168              0       554,663          4,630              (5)     1,132,224           394,073
   2017     63/60       376,143          0     218,460              0       535,133          4,630                0     1,134,367           407,927
   2018     64/61       383,666          0     233,752              0       514,374          4,630                0     1,136,423           421,430
   2019     65/62       391,339          0     250,115              0       498,069              0                1     1,139,524           436,829
   2020     66/63       399,166          0     267,623              0       479,163              0                1     1,145,953           451,691
   2021     67/64       407,150          0     286,357              0       456,826              0                1     1,150,334           465,764
   2022     68/65       415,293          0     306,402              0       435,744              0                0     1,157,438           480,992
   2023     69/66       423,598          0     327,850              0       415,716              0                3     1,167,167           497,474
   2024     70/67       432,070          0     350,799              0       392,344              0                3     1,175,217           513,560
   2025     71/68       440,712          0     375,355              0       365,311              0                3     1,181,381           529,206
   2026     72/69       449,526          0     189,960        202,344       342,215              0                0     1,184,045           538,427
   2027     73/70       458,517          0     203,257        206,515       315,962              0                0     1,184,251           546,394
   2028     74/71       467,687          0     217,485        210,262       286,292              0                0     1,181,727           552,973
   2029     75/72       477,041          0           0        424,950       270,834              0                0     1,172,823           544,670
   2030     76/73       486,581          0           0        421,729       250,777              0              (2)     1,159,086           533,660
   2031     77/74       496,313          0           0        418,053       226,856              0                5     1,141,227           520,208
   2032     78/75       506,239          0           0        413,888       199,055              0              (1)     1,119,181           504,257
   2033     79/76       516,364          0           0        409,163       167,009              0              (1)     1,092,534           485,553
   2035     81/78       537,225          0           0        398,031         88,410             0              (2)     1,023,665           439,007
   2040     86/83       593,140          0           0        102,000              0             0                2       695,142           102,000
   2045     91/88       654,875          0           0              0              0             0       (417,382)        237,492                 0
   2046     92/89       667,972          0           0              0              0             0       (544,913)        123,059                 0
                                                         † Taxes due upon sale or redemption




August 19, 2012                                                                                Page 65 of 128
         Income and Expense Summary Graph (Current)
         This graph shows you the breakdown of all of your income sources during your retirement. It also
         sets your total income against your total expenses. Total expenses include day-to-day expenses,
         semi-regular expenses (such as vacations), lump-sum expenses and taxes.
         If your expenses exceed your income, your total expenses line will be above the stacked income
         bar graph. If this occurs, you will either need to redeem investments, borrow or reduce your
         expenses to meet your cash flow needs.



                $350,000
                                  Employment & Business Income
                                  Government Benefits
                $300,000
                                  Retirement Income
                                  Pension Income
                $250,000
                                  Investment Income
                                  Misc. Income
                $200,000          Total Expenses
Amount




                $150,000



                $100,000



                 $50,000



                      $0
                             14

                                    15

                                           16

                                                  17

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                                                                                     22

                                                                                            23

                                                                                                   25

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                                                                                                                               45

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                           20

                                  20

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                                                20

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                                                                                                        20

                                                                                                               20

                                                                                                                      20

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                                                                                                                                    20




                                                                               Year

         In your current plan, the analysis indicates that you will begin to experience significant cash flow
         shortfalls in the year 2041.




         August 19, 2012                                                                                                 Page 66 of 128
Income and Expense Summary Report (Current)
This report shows you the breakdown of all of your income sources during your retirement. It also displays the costs of expenses and taxes.

                   Government     Retirement   Defined Benefit Money Purchase    Interest        Employment &     Tax Free        Misc.         Expenses
  Year   Age(s)     Benefits       Income      Pension Income Pension Income     Income         Business Income    Income        Income       (Except Taxes)    Total Tax
  2014     60/57          8,134          8,134                0              0              0                 0              0            0            68,193           382
  2015     61/58          9,140          9,140                0              0              0                 0              0            0            70,232           791
  2016     62/59          9,414          9,414                0              0              0                 0              0            0            72,333         1,023
  2017     63/60         11,716         11,716                0              0              0                 0              0            0            74,496         1,117
  2018     64/61         14,981         14,981                0              0              0                 0              0            0            76,725         1,825
  2019     65/62         23,145         23,145                0              0              0                 0              0            0            78,806         1,794
  2020     66/63         24,562         24,562                0              0              0                 0              0            0            81,170         2,143
  2021     67/64         25,299         25,299                0              0              0                 0              0            0            83,605         2,363
  2022     68/65         29,890         29,890                0              0              0                 0              0            0            86,114         1,407
  2023     69/66         36,312         36,312                0              0              0                 0              0            0            88,697         2,500
  2024     70/67         37,402         37,402                0              0              0                 0              0            0            91,358         2,672
  2025     71/68         38,524         38,524                0              0              0                 0              0            0            94,099         2,845
  2026     72/69         39,679         48,671                0              0              0                 0              0            0            96,922         4,074
  2027     73/70         40,870         50,505                0              0              0                 0              0            0            99,829         4,306
  2028     74/71         42,096         52,422                0              0              0                 0              0            0           102,824         4,544
  2029     75/72         43,359         74,926                0              0              0                 0              0            0           105,909         7,380
  2030     76/73         44,659         76,446                0              0              0                 0              0            0           109,821         8,350
  2031     77/74         45,999         78,008                0              0              0                 0              0            0           113,115         8,869
  2032     78/75         47,379         79,611                0              0              0                 0              0            0           116,509         9,058
  2033     79/76         48,801         81,291                0              0              0                 0              0            0           120,004         9,258
  2035     81/78         51,772         84,690                0              0              0                 0              0            0           127,312         9,657
  2040     86/83         60,018        172,025                0              0              0                 0              0            0           147,590       24,432
  2045     91/88         48,258         48,258                0              0              0                 0              0            0           171,097           910
  2046     92/89         49,706         49,706                0              0              0                 0              0            0           176,230         1,007




August 19, 2012                                                                                                                                      Page 67 of 128
Cash Flow Management Details (Current)
The following report illustrates many of the main cash inflow and outflow items during your retirement. These projections are based on the
strategies and assumptions you currently have in place.

                                   Employment &
                    Total Funds      Business         Discretionary                  Net Funds Discretionary     Current        Accumulated         Total Net
  Year    Age(s)     Received        Expenses           Savings        Total Tax     Received    Expenses     Surplus/ Deficit Surplus/ Deficit      Worth
  2014      60/57         68,582                  0                0           382        68,200       68,193                7                8       1,125,057
  2015      61/58         71,019                  0                0           791        70,228       70,232              (5)                3       1,129,757
  2016      62/59         73,348                  0                0         1,023        72,325       72,333              (8)              (5)       1,132,224
  2017      63/60         75,619                  0                0         1,117        74,501       74,496                5                0       1,134,367
  2018      64/61         78,550                  0                0         1,825        76,726       76,725                0                0       1,136,423
  2019      65/62         80,600                  0                0         1,794        78,806       78,806                0                1       1,139,524
  2020      66/63         83,313                  0                0         2,143        81,170       81,170                0                1       1,145,953
  2021      67/64         85,968                  0                0         2,363        83,606       83,605                0                1       1,150,334
  2022      68/65         87,518                  0                0         1,407        86,112       86,114              (2)                0       1,157,438
  2023      69/66         91,200                  0                0         2,500        88,700       88,697                3                3       1,167,167
  2024      70/67         94,030                  0                0         2,672        91,358       91,358                0                3       1,175,217
  2025      71/68         96,944                  0                0         2,845        94,099       94,099                0                3       1,181,381
  2026      72/69        100,992                  0                0         4,074        96,919       96,922              (3)                0       1,184,045
  2027      73/70        104,135                  0                0         4,306        99,829       99,829                0                0       1,184,251
  2028      74/71        107,368                  0                0         4,544       102,824     102,824                 0                0       1,181,727
  2029      75/72        113,288                  0                0         7,380       105,907     105,909               (1)                0       1,172,823
  2030      76/73        118,169                  0                0         8,350       109,819     109,821               (1)              (2)       1,159,086
  2031      77/74        121,992                  0                0         8,869       113,122     113,115                 7                5       1,141,227
  2032      78/75        125,560                  0                0         9,058       116,502     116,509               (6)              (1)       1,119,181
  2033      79/76        129,262                  0                0         9,258       120,004     120,004                 0              (1)       1,092,534
  2035      81/78        136,969                  0                0         9,657       127,312     127,312                 0              (2)       1,023,665
  2040      86/83        172,025                  0                0       24,432        147,592     147,590                 3                2         695,142
  2045      91/88         48,258                  0                0           910        47,348     171,097        (123,749)        (417,382)          237,492
  2046      92/89         49,706                  0                0         1,007        48,699     176,230        (127,531)        (544,913)          123,059




August 19, 2012                                                                                                                                   Page 68 of 128
         Needs vs. Abilities (Proposed)
         This graph illustrates your retirement needs and your ability to meet these objectives (in future
         dollars) based on your current retirement savings plan. These needs represent the after-tax amount
         and are based on your expected expenses during retirement.

                     $220,000
                                         Retirement Needs
                     $200,000            Uncapped Retirement Abilities


                     $180,000



                     $160,000
Amount




                     $140,000



                     $120,000



                     $100,000



                      $80,000



                      $60,000
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                                                      Retirement Goal Summary
                                                   Current       Amount (Under                                       Additional
                             Retirement           Retirement      Funded) Over Current Monthly                        Monthly
                                         1                                 2                                                 3
                           Income Needs            Assets           Funded         Savings                           Savings
                                   $58,639              $557,277       $305,980           $300                                     $0
         1
             Projected annual needs (in today's dollars) in the first full year of retirement, after tax.
         2
             Amount represents the ending retirement surplus/deficit.
         3
          Estimated amount based on saving to Suggested Asset Mix. This field will be empty for goals that don't have a
         Suggested Asset Mix.
         The average expected rate of return for assets linked to your Retirement goal is 7.73%.




         August 19, 2012                                                                                                          Page 69 of 128
Net Worth at Retirement (Proposed) – 2015
This net worth statement provides a snapshot of your projected net worth at the start of your
retirement.

                                             Anthony     Deborah     Joint      Total
        Non-Registered Assets
          Scotia McLeod Portfolio                                     636,124     636,124
          Total Non-Registered Assets                                 636,124     636,124

        Registered Assets
          Scotia McLeod MF Portfolio            93,984                             93,984
          Scotia McLeod MF Portfolio                       157,708                157,708
          Total Registered Assets               93,984     157,708                251,692

        Lifestyle Assets
           Anthony & Deborah's House                                  354,448     354,448
           Total Lifestyle Assets                                     354,448     354,448

        Life Insurance Cash Value
           Anthony Klient                        4,630                              4,630
           Total Life Insurance Cash Value       4,630                              4,630

        Total Assets                            98,614     157,708    990,572   1,246,894

        Total Net Worth                         98,614     157,708    990,572   1,246,894




August 19, 2012                                                                     Page 70 of 128
         Net Wealth Projection Graph (Proposed)
         The following graph illustrates how your net worth is projected to increase/decrease during your
         retirement. These projections are based on the strategies and assumptions we are proposing for
         your plan.

               $1,600,000                                                                                                    Lifestyle Assets
                                                                                                                             Business Assets
                                                                                                                             RRSP Assets
               $1,400,000                                                                                                    Pension Assets
                                                                                                                             Investment Assets
                                                                                                                             Life Insurance CSV
               $1,200,000                                                                                                    Accumulated Surplus/ Deficit
                                                                                                                             Assets Subject to Deferred Tax †

               $1,000,000
Amount




                $800,000




                $600,000




                $400,000




                $200,000




                      $0
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                                                                           Y ear



                                                                 † Taxes due upon sale or redemption
         Note that any life insurance assets represent the cash surrender value (CSV) of any life insurance
         policies included in your plan. Also, Lifestyle Assets may include your house, cottage, automobiles
         or any other personal assets.
         Your projected final net worth at the end of the plan, in the year 2046, is $1,118,015.




         August 19, 2012                                                                                                                         Page 71 of 128
Net Wealth Projection Report (Proposed)
The following report illustrates how each component of your net worth is projected to increase/decrease during your retirement. These
projections are based on the strategies and assumptions currently in place and also the ones we are proposing for your plan.

                    Lifestyle   Business                   Pension      Investment Life Insurance   Accumulated       Total Net    Assets Subject
   Year   Age(s)     Assets      Assets    RRSP Assets     Assets         Assets         CSV       Surplus/ Deficit    Worth      to Deferred Tax †
   2015     61/58       361,537          0     269,310              0       625,126          4,630                3     1,260,607           475,458
   2016     62/59       368,768          0     288,162              0       611,202          4,630              (5)     1,272,758           497,425
   2017     63/60       376,143          0     308,334              0       596,196          4,630                0     1,285,303           519,420
   2018     64/61       383,666          0     329,917              0       580,322          4,630                0     1,298,536           541,656
   2019     65/62       391,339          0     353,011              0       569,292              0                1     1,313,644           566,425
   2020     66/63       399,166          0     377,722              0       556,084              0                1     1,332,974           591,338
   2021     67/64       407,150          0     404,162              0       539,902              0                1     1,351,215           616,196
   2022     68/65       415,293          0     432,454              0       525,465              0                0     1,373,211           642,993
   2023     69/66       423,598          0     462,726              0       512,615              0                3     1,398,941           671,888
   2024     70/67       432,070          0     495,116              0       496,995              0                3     1,424,185           701,291
   2025     71/68       440,712          0     529,774              0       478,334              0                3     1,448,823           731,225
   2026     72/69       449,526          0     355,189        202,344       464,279              0                0     1,471,339           755,776
   2027     73/70       458,517          0     380,052        206,515       447,791              0                0     1,492,875           780,192
   2028     74/71       467,687          0     406,656        210,262       428,668              0                0     1,513,273           804,420
   2029     75/72       477,041          0           0        612,883       436,540              0                0     1,526,462           805,852
   2030     76/73       486,581          0           0        608,238       441,773              0                0     1,536,593           805,418
   2031     77/74       496,313          0           0        602,936       445,601              0                3     1,544,853           803,595
   2032     78/75       506,239          0           0        596,929       447,854              0                3     1,551,025           800,251
   2033     79/76       516,364          0           0        590,115       448,258              0              (2)     1,554,734           795,148
   2034     80/77       526,691          0           0        582,522       446,609              0              (2)     1,555,820           788,210
   2035     81/78       537,225          0           0        574,060       442,746              0              (2)     1,554,029           779,263
   2040     86/83       593,140          0           0        516,252       380,525              0                9     1,489,926           697,056
   2045     91/88       654,875          0           0        425,782       139,728              0              (9)     1,220,375           493,282
   2046     92/89       667,972          0           0        402,773         47,270             0                0     1,118,015           425,667
                                                         † Taxes due upon sale or redemption




August 19, 2012                                                                                                                  Page 72 of 128
         Income and Expense Summary Graph (Proposed)
         This graph shows you the breakdown of all of your income sources during your retirement. It also
         sets your total income against your total expenses. Total expenses include day-to-day expenses,
         semi-regular expenses (such as vacations), lump-sum expenses and taxes.
         If your expenses exceed your income, your total expenses line will be above the stacked income
         bar graph. If this occurs, you will either need to redeem investments, borrow or reduce your
         expenses to meet your cash flow needs.



                $350,000
                                  Employment & Business Income
                                  Government Benefits
                $300,000
                                  Retirement Income
                                  Pension Income
                $250,000
                                  Investment Income
                                  Misc. Income
                $200,000          Total Expenses
Amount




                $150,000



                $100,000



                 $50,000



                      $0
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         In our proposed plan, the analysis indicates that you will not experience any significant cash flow
         shortfalls throughout your lifetime.




         August 19, 2012                                                                                                 Page 73 of 128
Income and Expense Summary Report (Proposed)
This report shows you the breakdown of all of your income sources during your retirement. It also displays the costs of expenses and taxes.

                   Government     Retirement   Defined Benefit Money Purchase    Interest        Employment &     Tax Free        Misc.         Expenses
  Year   Age(s)     Benefits       Income      Pension Income Pension Income     Income         Business Income    Income        Income       (Except Taxes)    Total Tax
  2015     61/58          9,140          9,140                0              0              0                 0              0            0            70,232           792
  2016     62/59          9,414          9,414                0              0              0                 0              0            0            72,333         1,023
  2017     63/60         11,716         11,716                0              0              0                 0              0            0            74,496         1,117
  2018     64/61         14,981         14,981                0              0              0                 0              0            0            76,725         1,825
  2019     65/62         23,145         23,145                0              0              0                 0              0            0            78,806         1,794
  2020     66/63         24,562         24,562                0              0              0                 0              0            0            81,170         2,143
  2021     67/64         25,299         25,299                0              0              0                 0              0            0            83,605         2,363
  2022     68/65         29,890         29,890                0              0              0                 0              0            0            86,114         1,407
  2023     69/66         36,312         36,312                0              0              0                 0              0            0            88,697         2,500
  2024     70/67         37,402         37,402                0              0              0                 0              0            0            91,358         2,672
  2025     71/68         38,524         38,524                0              0              0                 0              0            0            94,099         2,845
  2026     72/69         39,679         48,671                0              0              0                 0              0            0            96,922         4,074
  2027     73/70         40,870         50,505                0              0              0                 0              0            0            99,829         4,306
  2028     74/71         42,096         52,422                0              0              0                 0              0            0           102,824         4,544
  2029     75/72         43,359         88,887                0              0              0                 0              0            0           105,909         9,401
  2030     76/73         44,659         90,503                0              0              0                 0              0            0           109,821       10,372
  2031     77/74         45,999         92,164                0              0              0                 0              0            0           113,115       10,560
  2032     78/75         47,379         93,865                0              0              0                 0              0            0           116,509       10,752
  2033     79/76         48,801         95,659                0              0              0                 0              0            0           120,004       11,086
  2034     80/77         50,265         97,415                0              0              0                 0              0            0           123,604       11,320
  2035     81/78         51,772         99,248                0              0              0                 0              0            0           127,312       11,527
  2040     86/83         60,018        109,160                0              0              0                 0              0            0           147,590       12,814
  2045     91/88         48,258         98,905                0              0              0                 0              0            0           171,097       27,424
  2046     92/89         49,706        100,629                0              0              0                 0              0            0           176,230       28,025




August 19, 2012                                                                                                                                      Page 74 of 128
Cash Flow Management Details (Proposed)
The following report illustrates many of the main cash inflow and outflow items during your retirement. These projections are based on the
strategies and assumptions currently in place and also the ones we are proposing for your plan.

                                   Employment &
                    Total Funds      Business         Discretionary                  Net Funds Discretionary     Current        Accumulated         Total Net
  Year    Age(s)     Received        Expenses           Savings        Total Tax     Received    Expenses     Surplus/ Deficit Surplus/ Deficit      Worth
  2015      61/58         71,027                  0                0           792        70,236       70,232                3                3       1,260,607
  2016      62/59         73,348                  0                0         1,023        72,325       72,333              (8)              (5)       1,272,758
  2017      63/60         75,619                  0                0         1,117        74,501       74,496                5                0       1,285,303
  2018      64/61         78,550                  0                0         1,825        76,726       76,725                0                0       1,298,536
  2019      65/62         80,600                  0                0         1,794        78,806       78,806                0                1       1,313,644
  2020      66/63         83,313                  0                0         2,143        81,170       81,170                0                1       1,332,974
  2021      67/64         85,968                  0                0         2,363        83,606       83,605                0                1       1,351,215
  2022      68/65         87,518                  0                0         1,407        86,112       86,114              (2)                0       1,373,211
  2023      69/66         91,200                  0                0         2,500        88,700       88,697                3                3       1,398,941
  2024      70/67         94,030                  0                0         2,672        91,358       91,358                0                3       1,424,185
  2025      71/68         96,944                  0                0         2,845        94,099       94,099                0                3       1,448,823
  2026      72/69        100,992                  0                0         4,074        96,919       96,922              (3)                0       1,471,339
  2027      73/70        104,135                  0                0         4,306        99,829       99,829                0                0       1,492,875
  2028      74/71        107,368                  0                0         4,544       102,824     102,824                 0                0       1,513,273
  2029      75/72        115,309                  0                0         9,401       105,908     105,909               (1)                0       1,526,462
  2030      76/73        120,192                  0                0       10,372        109,820     109,821                 0                0       1,536,593
  2031      77/74        123,679                  0                0       10,560        113,119     113,115                 4                3       1,544,853
  2032      78/75        127,261                  0                0       10,752        116,509     116,509                 0                3       1,551,025
  2033      79/76        131,084                  0                0       11,086        119,998     120,004               (6)              (2)       1,554,734
  2034      80/77        134,924                  0                0       11,320        123,604     123,604                 0              (2)       1,555,820
  2035      81/78        138,839                  0                0       11,527        127,312     127,312                 0              (2)       1,554,029
  2040      86/83        160,415                  0                0       12,814        147,601     147,590               11                 9       1,489,926
  2045      91/88        198,504                  0                0       27,424        171,080     171,097             (17)               (9)       1,220,375
  2046      92/89        204,265                  0                0       28,025        176,240     176,230               10                 0       1,118,015




August 19, 2012                                                                                                                                   Page 75 of 128
         Retirement Net Worth Comparison
         The following graph illustrates a comparison of the projection of your net worth between your
         current and proposed plan during retirement.
         Plan A: Current Plan
         Plan B: Proposed Plan

                $1,600,000                                                                                                                                                                           Plan A: Total Net Worth
                                                                                                                                                                                                     Plan B: Total Net Worth

                $1,400,000




                $1,200,000




                $1,000,000
Amount




                 $800,000




                 $600,000




                 $400,000




                 $200,000




                       $0
                             2014
                                    2015
                                           2016
                                                  2017
                                                         2018
                                                                2019
                                                                       2020
                                                                              2021
                                                                                     2022
                                                                                            2023
                                                                                                   2024
                                                                                                          2025
                                                                                                                 2026
                                                                                                                        2027
                                                                                                                               2028
                                                                                                                                      2029
                                                                                                                                             2030
                                                                                                                                                    2031
                                                                                                                                                           2032
                                                                                                                                                                  2033
                                                                                                                                                                         2035
                                                                                                                                                                                2040
                                                                                                                                                                                       2045
                                                                                                                                                                                              2046




                                                                                                          Year



         In your current plan, your net worth at retirement, in the year 2013, is $1,118,875, and at the end of
         the plan, in the year 2046, it is $123,059.
         In our proposed plan, your net worth at retirement, in the year 2014, is $1,246,894, and at the end
         of the plan, in the year 2046, it is $1,118,015.




         August 19, 2012                                                                                                                                                                                       Page 76 of 128
Asset and Liability Comparison 2014 and 2015
The following report illustrates a comparison of the projection of your net worth between your
current and proposed plan in your first two years of retirement.
Plan A: Current Plan
Plan B: Proposed Plan

                                                  2014:60/57                   2015:61/58
                                            Plan A          Plan B       Plan A          Plan B
   Non-Registered
     Scotia McLeod Portfolio (Joint)           587,643         636,124      572,775         625,126
     Subtotal                                  587,643         636,124      572,775         625,126

   Registered
     Scotia McLeod MF Portfolio (Anthony)       93,984          93,984      100,563         100,563
     Scotia McLeod MF Portfolio (Deborah)       84,345         157,708       90,249         168,748
     Subtotal                                  178,329         251,692      190,812         269,310

   Lifestyle
      Anthony & Deborah's House (Joint)        354,448         354,448      361,537         361,537
      Subtotal                                 354,448         354,448      361,537         361,537

   Life Insurance
      Anthony Klient                             4,630           4,630        4,630           4,630
      Subtotal                                   4,630           4,630        4,630           4,630

   Surplus/(Deficit)                                 8               0            3               3

   Total                                     1,125,057       1,246,894    1,129,757       1,260,607




August 19, 2012                                                                        Page 77 of 128
                  Emergency Fund
                        Planning




August 19, 2012              Page 79 of 128
Emergency Fund Overview
What is an Emergency Fund?
An emergency fund is usually a separate account that you maintain to meet unexpected and
important short-term needs such as a car repair or a new appliance. Investments that are well
suited for an emergency fund include savings accounts, money market accounts and short-term
guaranteed investment certificates (GICs).

Why is an Emergency Fund Necessary?
Emergency funds are established to minimize the effect of an unexpected event such as a
temporary job loss or reduction in income. It is not intended to meet anticipated expenses such as
property taxes, post-secondary tuition, or a vacation.
In difficult times, you do not want to be put in a position to sell assets at a reduced value.

How large should an Emergency Fund be?
Your emergency fund should reflect your own personal situation. While there are general
guidelines, you should adjust them to reflect your personal circumstances. You should take into
consideration your job security, and the health of you and your family when deciding on the amount
of your cash reserve. The starting point in your evaluation can begin with assessing a reserve of
three months of regular living expenses. You will need to review this requirement when major
events in your life occur such as the birth of a child or a change in employment.

Having trouble saving?
If you have difficulties in establishing an adequate emergency fund, you may also consider
establishing a personal line of credit to meet unexpected needs. You should ensure that you could
maintain the payment of this debt within your regular budget. You should try to repay this debt as
quick as possible when circumstances improve.




August 19, 2012                                                                            Page 80 of 128
          Emergency Fund Goal
          A general guideline for emergency funds is to maintain a fund of liquid assets, which can be easily
          converted into cash, to cover emergency expenses. Your Emergency Fund target is currently
          $13,570.
          The following tables illustrate the amounts needed to meet potential emergency financial situations
          and those funds that you have currently allocated. The amount this goal is over or under funded is
          also shown.

                                                            Current Plan
                 $16,000
                                                                                   Emergency Fund Target
                 $15,000                                                           Emergency Fund Amount Allocated
                 $14,000

                 $13,000

                 $12,000

                 $11,000
Am ount




                 $10,000

                  $9,000

                  $8,000

                  $7,000

                  $6,000

                  $5,000

                  $4,000
                            2009          2010       2011        2012       2013
                                                     Year




                                                  Emergency   Amount     Amount       Percent
                                   Year   Age(s) Fund Target Allocated Over/(Under) Over/(Under)
                                   2009     55/52     13,570      4,630       (8,940)        (66)
                                   2010     56/53     13,976      4,630       (9,346)        (67)
                                   2011     57/54     14,394      4,630       (9,764)        (68)
                                   2012     58/55     14,824      4,630      (10,194)        (69)
                                   2013     59/56     15,267      4,630      (10,637)        (70)



                                                            Proposed Plan
                 $16,000
                                                                                   Emergency Fund Target
                 $15,000                                                           Emergency Fund Amount Allocated
                 $14,000

                 $13,000

                 $12,000

                 $11,000
Am ount




                 $10,000

                  $9,000

                  $8,000

                  $7,000

                  $6,000

                  $5,000

                  $4,000
                            2009          2010       2011        2012       2013
                                                     Year




                                                  Emergency   Amount     Amount       Percent
                                   Year   Age(s) Fund Target Allocated Over/(Under) Over/(Under)
                                   2009     55/52     13,570      4,630       (8,940)        (66)
                                   2010     56/53     13,976      4,630       (9,346)        (67)
                                   2011     57/54     14,394      4,630       (9,764)        (68)
                                   2012     58/55     14,824      4,630      (10,194)        (69)
                                   2013     59/56     15,267      4,630      (10,637)        (70)




          August 19, 2012                                                                                            Page 81 of 128
            Monte Carlo Analysis




August 19, 2012             Page 83 of 128
Monte Carlo Analysis Overview
Probability analysis expands the traditional financial planning model by adding uncertainty into the
plan. This analysis takes into consideration the difficulty of accurately predicting annual return rate
expectations. While return rate expectations over the long term can be reasonably predicted, the
actual pattern over the short term is difficult to predict and may often appear random. Probability
analysis evaluates your financial plan by randomizing the return rates with the normal expected
range each year and performing this analysis multiple times to simulate a number of possible
financial outcomes. Probability analysis is also known as Monte Carlo Analysis or Monte Carlo
Simulation (MCS).
For example, an account with a projected average return rate of 8% is subject to variations due to
future uncertainties of various investment markets. Probability analysis allows us to randomly
project an account’s returns forward assuming that in some years the account will return rates lower
than the average, say 4%, and in other years the account will return a rate higher than the average,
say 12%, for an overall average of 8%. Allowing for this variability in returns does have an impact
on the overall plan and the probability for success.
Another element that may be taken into consideration is the uncertainty of your life expectancy.
What if you die tomorrow or live to be 110? Monte Carlo can also add this parameter to the analysis
by simulating a different possible life expectancy for each projection.
Those outcomes that are able to satisfy all your financial objectives are considered successes and
those that do not are considered failures. Overall, a probability of success is determined.

Analyzing the Results
The significance of this graph is that the element of uncertainty will cause the results of each
projection to vary. From a financial planning perspective, it is important for your plan to withstand
the expected changes in the value of your investments and be able to meet your income needs
throughout your lifetime. The greater the risk in your investments, the greater the cushion of assets
you will need to withstand the ups and the downs of the market. When selecting an investment
portfolio you should try to select a portfolio with a risk level that is consistent with meeting all your
financial objectives and avoiding any unnecessary risk.




August 19, 2012                                                                           Page 84 of 128
                  Monte Carlo Sensitivity Analysis (Current)
                  The two graphs in this analysis display a number of projections. The top graph illustrates cash flow
                  and the bottom graph illustrates net worth. In each projection, the return rate expectations have
                  been randomized each year within a range to simulate the expected ups and downs that many
                  investments, such as stocks, exhibit. The line in each graph represents the traditional projection,
                  based on the rates of return that were specified in the plan, without any fluctuations from year to
                  year.
                  Each projection may either be a success or a failure. A success is represented by a series of
                  square points. A failure is represented by a series of “X”s. A success is defined as a projection that
                  is able to meet the cash flow needs in every year of the plan, without experiencing an accumulated
                  deficit greater than $10,000.

                                                                            Cash Flow
                           $0.5M


                           $0.0M


                          ($0.5M)


                          ($1.0M)
                                           Accum. Surplus/Deficit (unsuccessful)
                          ($1.5M)          Accum. Surplus/Deficit (successful)
                                           Accum. Surplus/Deficit (average)
                          ($2.0M)


                          ($2.5M)


                          ($3.0M)


                          ($3.5M)
                                    2009      2014      2019       2024       2029   2034     2039   2044   2049   2054    2059
                                                                                      Y ear


                                                                            Net Worth
                           $1.5M


                           $1.0M


                           $0.5M
Total Net Worth




                           $0.0M
                                           Total Net Worth (unsuccessful)
                          ($0.5M)          Total Net Worth (successful)
                                           Total Net Worth (average)
                          ($1.0M)


                          ($1.5M)


                          ($2.0M)


                          ($2.5M)
                                    2009      2014      2019       2024       2029   2034     2039   2044   2049   2054    2059
                                                                                      Y ear



                  August 19, 2012                                                                                  Page 85 of 128
                                                           Goal Details
             The graph below illustrates each of the trails in the Monte Carlo Simulation for each of the goals.
             Blue markers show the successful trials and red markers show the unsuccessful trails.
             Retirement Goal
                     $1.5M


                     $1.0M


                     $0.5M


                     $0.0M
Goal Value




                    ($0.5M)
                               Goal value (successful)
                    ($1.0M)
                               Goal value (unsuccessful)
                               Desired goal value
                    ($1.5M)
                               10th Percentile
                    ($2.0M)    50th Percentile
                               90th Percentile
                    ($2.5M)
                                                                 Trials




             August 19, 2012                                                                      Page 86 of 128
                              Goal Summary and Assumptions
In addition to the success of each goal, the table below also illustrates the 90th, 50th and 10th
percentile value of the assets associated with each goal. The 90th percentile illustrates the
projection where 90% of the results are below this value. The 50th percentile is the median
projection where half the projections fall above and half fall below this value. The 10 th percentile
illustrates the projection where 10% of the results are below this value.

Goal                          Success    10th Percentile   50th Percentile   90th Percentile
                               Rate
Retirement Goal               28.67%      -$1,219,460         -$34,212          $778,074



The table below illustrates the various assumptions made in the analysis of the current plan. If the
Life Expectancy Randomized indicator shows “yes”, we have illustrated your life expectancy
changing in each projection based on generally accepted mortality tables (GAM). This aspect of the
analysis takes into consideration the fact that you may die prematurely or live beyond your life
expectancy.
The Annual Cash flow Deficit Tolerance takes into consideration that from time to time you may
experience minor annual cash flow deficits. These are minor events that can be addressed by
borrowing the funds over the short term and repaying the debt when your cash flow improves. In
this analysis, any deficit above the tolerance amount will not cause a particular projection to fail and
skew the analysis of your financial success. The Goal Success Tolerance is the amount that the
goal can be under funded in any trial and still be considered a success.

Assumptions
Life Expectancy Randomized                                         Yes
Force Full Deficit Coverage                                        Yes
Annual Cashflow Deficit Tolerance                             -$10,000
Education Goals Success Tolerance                              -$1,000
Major Purchase Goals Success Tolerance                           -$500
Number of Projections                                              150




August 19, 2012                                                                                Page 87 of 128
                  Monte Carlo Sensitivity Analysis (Proposed)
                  The two graphs in this analysis display a number of projections. The top graph illustrates cash flow
                  and the bottom graph illustrates net worth. In each projection, the return rate expectations have
                  been randomized each year within a range to simulate the expected ups and downs that many
                  investments, such as stocks, exhibit. The line in each graph represents the traditional projection,
                  based on the rates of return that were specified in the plan, without any fluctuations from year to
                  year.
                  Each projection may either be a success or a failure. A success is represented by a series of
                  square points. A failure is represented by a series of “X”s. A success is defined as a projection that
                  is able to meet the cash flow needs in every year of the plan, without experiencing an accumulated
                  deficit greater than $10,000.

                                                                            Cash Flow
                            $0.25M

                            $0.00M

                           ($0.25M)

                           ($0.50M)

                           ($0.75M)

                           ($1.00M)

                           ($1.25M)

                           ($1.50M)

                           ($1.75M)

                           ($2.00M)
                                            Accum. Surplus/Deficit (unsuccessful)
                           ($2.25M)
                                            Accum. Surplus/Deficit (successful)
                           ($2.50M)
                                            Accum. Surplus/Deficit (average)
                           ($2.75M)
                                   2009         2014      2019       2024     2029     2034          2039    2044    2049   2054    2059
                                                                                            Y ear


                                                                            Net Worth
                          $7M
                                         Total Net Worth (unsuccessful)
                          $6M
                                         Total Net Worth (successful)
                          $5M            Total Net Worth (average)

                          $4M
Total Net Worth




                          $3M

                          $2M

                          $1M

                          $0M

                          ($1M)

                          ($2M)
                                  2009      2014       2019      2024       2029     2034           2039    2044    2049    2054    2059
                                                                                        Y ear



                  August 19, 2012                                                                                              Page 88 of 128
                                                           Goal Details
             The graph below illustrates each of the trails in the Monte Carlo Simulation for each of the goals.
             Blue markers show the successful trials and red markers show the unsuccessful trails.
             Retirement Goal
                    $6M
                               Goal value (successful)      10th Percentile
                    $5M        Goal value (unsuccessful)    50th Percentile
                               Desired goal value           90th Percentile
                    $4M


                    $3M
Goal Value




                    $2M


                    $1M


                    $0M


                   ($1M)


                   ($2M)
                                                                   Trials




             August 19, 2012                                                                      Page 89 of 128
                              Goal Summary and Assumptions
In addition to the success of each goal, the table below also illustrates the 90 th, 50th and 10th
percentile value of the assets associated with each goal. The 90th percentile illustrates the
projection where 90% of the results are below this value. The 50th percentile is the median
projection where half the projections fall above and half fall below this value. The 10 th percentile
illustrates the projection where 10% of the results are below this value.

Goal                          Success    10th Percentile   50th Percentile   90th Percentile
                               Rate
Retirement Goal               58.67%       -$939,094          $746,688         $1,718,881



The table below illustrates the various assumptions made in the analysis of the proposed plan. If
the Life Expectancy Randomized indicator shows “yes”, we have illustrated your life expectancy
changing in each projection based on generally accepted mortality tables (GAM). This aspect of the
analysis takes into consideration the fact that you may die prematurely or live beyond your life
expectancy.
The Annual Cash flow Deficit Tolerance takes into consideration that from time to time you may
experience minor annual cash flow deficits. These are minor events that can be addressed by
borrowing the funds over the short term and repaying the debt when your cash flow improves. In
this analysis, any deficit above the tolerance amount will not cause a particular projection to fail and
skew the analysis of your financial success. The Goal Success Tolerance is the amount that the
goal can be under funded in any trial and still be considered a success.

Assumptions
Life Expectancy Randomized                                         Yes
Force Full Deficit Coverage                                        Yes
Annual Cashflow Deficit Tolerance                             -$10,000
Education Goals Success Tolerance                              -$1,000
Major Purchase Goals Success Tolerance                           -$500
Number of Projections                                              150




August 19, 2012                                                                                Page 90 of 128
                  Disability Insurance
                              Planning




August 19, 2012                   Page 91 of 128
Disability Insurance Overview
What is disability insurance?
Disability insurance (sometimes referred to as disability income insurance) pays benefits when you
are unable to earn a living because of a disabling injury or illness. Like all insurance, disability
insurance is designed to protect you and your family against financial disaster. Most disability
policies pay a benefit that replaces a portion of your earned income (usually two-thirds) when you
are unable to work. Generally, benefits are provided for the disabled person in the form of monthly
payments. A disability insurance policy should ensure that there is sufficient income replacement to
maintain your standard of living when you cannot work.

Who needs disability insurance?
Almost everyone who earns a living needs disability insurance. Disability strikes more often than
you may think. The chances of being disabled for longer than three months are much greater than
the chances of dying prematurely.

Types of disability insurance
There are two types of disability insurance plans: temporary disability (including sick leave plans
and short-term disability) and long-term disability.

   Sick Leave Plans:
   Sick leave is designed to provide you with protection against loss of wages due to a sickness or
   accident that lasts for a short period of time. Some employers allow you to accrue sick days on
   a monthly basis or they allocate a set number of sick days per year. Sick leave can be paid or
   unpaid. You may go without pay for a while if your paid sick days run out.

   Short-term Disability (STD) Plans
   Short-term disability plans are the most common type of disability insurance that employers
   offer to their employees. Short-term Disability Insurance is designed to provide benefits for a
   temporary period of time, usually 3 to 6 months. As a result, this type of policy usually has a
   waiting period of 8 to 10 days. This type of plan bridges the gap between sick leave plans and
   long-term disability plans.

   Long-Term Disability (LTD) Plans
   Long-term disability insurance is designed to provide benefits for a long duration such as 2
   years, 5 years, or in some cases up to age 65. The waiting period for this policy is usually 90 or
   more days. Many employers offer group long-term disability insurance. You should examine an
   employer’s plan closely since they vary widely. You may need to buy extra disability coverage
   yourself to supplement your group plan and to provide disability coverage in the event you
   cease to be eligible for the group disability insurance.




August 19, 2012                                                                       Page 92 of 128
Common Sources of Disability Insurance
   Private disability insurance
   Private disability insurance is generally available through groups and to individuals and is
   purchased through an insurance company. When you are covered by group insurance at work,
   the premium is usually paid through your employer. Employer-paid disability income benefits are
   subject to income tax. Employers are not required to offer long-term disability insurance. They
   may also take government disability insurance programs into account when calculating your
   long-term disability benefits. You may also consider buying additional private insurance if you
   cannot match your pre-disability, after-tax income. Individually owned policies may offer more
   coverage at additional cost. Private disability insurance usually provides more comprehensive
   benefits than government programs.

   Government disability insurance
   Canada Pension Plan/Quebec Pension Plan (CPP/QPP) and Workers' Compensation are two
   common examples of government disability insurance programs. CPP/QPP offers you some
   disability insurance but there are many restrictions placed on who can qualify. Also the amount
   probably won’t be enough for you or your family to maintain your current standard of living.
   Workers’ Compensation may be available if your disability is job-related. These benefits are
   typically short-term as well. It is not very practical to rely exclusively on either of these two
   programs.

Definitions of Disability
One of the most important aspects of any disability policy is its definition of disability. The two basic
definitions of disability are “Any Occupation” or “Own Occupation”, though your policy may have a
modified or combined definition.
      Any Occupation – The inability to perform the duties of any job for which your education and
       training qualify you.
      Own Occupation – The inability to perform the duties of your own specific occupation. This
       type of policy is often not available.

Taxation of Disability Insurance Benefits and Premiums
When you purchase private disability insurance the benefits paid are generally received on a tax-
free basis. If an employer pays all or part of the premium for group disability insurance coverage,
the benefit payments are considered to be taxable income to you.




August 19, 2012                                                                           Page 93 of 128
Plan Projection if Anthony is Disabled (Proposed)
The following graph shows the impact on your cash flow and net worth if Anthony were to become
disabled on January 1, 2010.

         Pre-Retired Disabled
    Anthony                                                          Ret/Dis                                                 Deceased
   Deborah          Pre-Retired                                            Retired                                                 Deceased
     0.6M
                    Accumulated Surplus/ Deficit
     0.4M
                    Current Surplus/ Deficit
     0.2M
     0.0M
     -0.2M
     -0.4M
     -0.6M
     -0.8M
     -1.0M
     -1.2M
     -1.4M
             2009              2013            2017   2021   2025   2029             2033   2037               2041        2045
     1.2M
                                                                                            Total Net Worth
     1.0M
                                                                                            Lifestyle Assets
     0.8M
     0.6M
     0.4M
     0.2M
     0.0M
     -0.2M
     -0.4M
     -0.6M
     -0.8M
     -1.0M
             2009              2013            2017   2021   2025   2029             2033   2037               2041        2045




We have analyzed your plan from 2009 to 2015 to estimate the impact of Anthony becoming
permanently disabled next year and have determined that no significant deficits will occur. This
analysis illustrates the impact on your financial plan until Anthony turns 61.
We have also analyzed your plan from 2016 to 2046 to estimate the impact of Anthony becoming
permanently disabled next year and have determined that no significant deficits will occur. This
analysis illustrates the impact on your financial plan during the period AFTER Anthony turns 61.




August 19, 2012                                                                                                       Page 94 of 128
Cash Flow Summary if Anthony is Disabled
(Proposed)
The following report shows the major cash inflow and outflow items if Anthony were to become
disabled and the family was to experience this loss of income.

                                                      After Tax        Total     Current        Accumulated
   Year      Age(s) Total Income        Total Tax      Income        Expenses Surplus/ Deficit Surplus/ Deficit
   2009        55/52       74,357             9,841        64,516        74,357              0                0
   2010        56/53       61,107             5,323        55,784        68,713              0                0
   2011        57/54       66,106             6,316        59,791        71,505              0                0
   2012        58/55       68,483             6,576        61,907        73,618              0                0
   2013        59/56       70,909             6,841        64,067        75,792              0                0
   2014        60/57       56,714             2,259        54,455        69,704              0                0
   2015        61/58       60,173               189        59,984        86,512              4                4
   2016        62/59       64,089               344        63,745        89,257              2                6
   2017        63/60       69,462             1,691        67,772        93,271            (5)                1
   2018        64/61       74,574             2,316        72,258        96,644              2                3
   2019        65/62       80,351             2,287        78,064        99,444              0                4
   2020        66/63       84,458             2,449        82,009       102,522              1                5
   2021        67/64       88,472             2,652        85,820       105,726              1                6
   2022        68/65       92,361             1,683        90,678       107,850            (2)                4
   2023        69/66       98,303             2,919        95,384       112,271              5                9
   2024        70/67      102,344             3,047        99,297       115,680            (5)                4
   2025        71/68      121,826           12,185        109,641       128,196              0                5
   2026        72/69      144,384           24,895        119,489       144,387            (3)                2
   2027        73/70      148,565           25,489        123,075       148,566            (1)                1
   2028        74/71      152,839           26,077        126,762       152,846            (7)              (6)
   2030        76/73      126,724           16,904        109,819       126,725            (1)                5
   2035        81/78       51,772               600        51,172       127,912      (76,140)         (283,526)
   2040        86/83       60,018               600        59,418       148,190      (88,171)         (699,608)
   2045        91/88       48,258               910        47,348       172,006     (123,749)       (1,235,236)
   2046        92/89       49,706             1,007        48,699       177,237     (127,531)       (1,362,767)
          This report illustrates the impact of Anthony becoming disabled at the beginning of NEXT year (2010).




August 19, 2012                                                                                         Page 95 of 128
Plan Projection if Deborah is Disabled (Proposed)
The following graph shows the impact on your cash flow and net worth if Deborah were to become
disabled on January 1, 2010.

    Anthony           Pre-Retired                                      Retired                                    Deceased
        Pre-RetiredDisabled
   Deborah                                                                  Ret/Dis                                     Deceased
     600K
                     Accumulated Surplus/ Deficit
                     Current Surplus/ Deficit
     400K


     200K


       0K


    -200K


    -400K


    -600K
              2009              2013            2017   2021   2025   2029             2033   2037   2041        2045
     1.2M
                     Total Net Worth
     1.0M            Lifestyle Assets


     0.8M

     0.6M

     0.4M

     0.2M

     0.0M

     -0.2M
              2009              2013            2017   2021   2025   2029             2033   2037   2041        2045




We have analyzed your plan from 2009 to 2014 to estimate the impact of Deborah becoming
permanently disabled next year and have determined that no significant deficits will occur. This
analysis illustrates the impact on your financial plan until Deborah turns 57.
We have also analyzed your plan from 2015 to 2046 to estimate the impact of Deborah becoming
permanently disabled next year and have determined that no significant deficits will occur. This
analysis illustrates the impact on your financial plan during the period AFTER Deborah turns 57.




August 19, 2012                                                                                            Page 96 of 128
Cash Flow Summary if Deborah is Disabled
(Proposed)
The following report shows the major cash inflow and outflow items if Deborah were to become
disabled and the family was to experience this loss of income.

                                                      After Tax        Total     Current        Accumulated
   Year       Age(s) Total Income       Total Tax      Income        Expenses Surplus/ Deficit Surplus/ Deficit
   2009         55/52       74,357            9,841        64,516        74,357              0                0
   2010         56/53       49,235            2,447        46,789        61,646              0                0
   2011         57/54       52,987            2,955        50,032        63,930            (4)              (5)
   2012         58/55       56,267            3,458        52,809        66,349              5                0
   2013         59/56       58,034            3,407        54,628        68,092              0                0
   2014         60/57       63,735            5,419        58,316        70,455              0                0
   2015         61/58       52,156                0        52,156        70,232              8                9
   2016         62/59       55,095               16        55,080        72,349            (8)                0
   2017         63/60       57,778              229        57,549        74,726              3                4
   2018         64/61       60,034                0        60,034        76,725            (5)              (1)
   2019         65/62       65,102              300        64,802        79,106              0              (1)
   2020         66/63       68,284              300        67,984        81,470              0              (2)
   2021         67/64       71,332              300        71,032        83,905              0              (1)
   2022         68/65       75,358              518        74,840        86,631            (2)              (3)
   2023         69/66       79,550              600        78,950        89,297              0              (4)
   2024         70/67       82,666              600        82,066        91,958              0              (4)
   2025         71/68       85,848              600        85,248        94,699            10                 5
   2026         72/69       90,610              857        89,753        97,778              2                8
   2027         73/70       93,977              948        93,030       100,777            (3)                4
   2028         74/71       97,423            1,042        96,381       103,866            (3)                0
   2030         76/73      113,273            6,631       106,641       116,452            11                10
   2035         81/78      143,003          15,752        127,251       143,064            10                 9
   2040         86/83      168,359          20,768        147,591       168,358              1                3
   2045         91/88       48,258              514        47,743       171,611     (123,353)        (455,233)
   2046         92/89       49,706              600        49,106       176,830     (127,124)        (582,357)
          This report illustrates the impact of Deborah becoming disabled at the beginning of NEXT year (2010).




August 19, 2012                                                                                         Page 97 of 128
  Life Insurance Planning




August 19, 2012      Page 99 of 128
Life Insurance Overview
The purpose of life insurance is to lessen the financial impact associated with the death of a family
member, particularly the heads of the household. By planning for these situations, you have the
opportunity to preserve your existing family assets and also replace the income that would have
been earned. Life insurance can also bring peace of mind, knowing that these risks are covered.
A life insurance analysis should ensure that when a death occurs in your family, there is sufficient
income and capital to cover the cash flow needs for the surviving family members over the entire
planning period. When you are young, a major reason for having life insurance is to provide
financial protection for your dependant family. Without the continued benefit of your income, your
family may not be able to afford their ongoing expenses for housing, transportation, food, clothing,
etc. There may also be additional expenses for childcare. Post-secondary education and retirement
needs will also continue to exist.
When you are older, the major goal of life insurance may be to protect the value of your estate from
declining due to income tax and other costs. This type of life insurance provides cash flow to meet
these needs, which would otherwise have to be covered by redeeming your existing assets.
The amount of life insurance coverage required depends on your specific financial circumstances.
Your financial needs will change over time. For example, when your children move away and
become financially independent the need to support them will disappear. Furthermore, as your
investments accumulate, these assets could provide income if the need arose which reduces the
need for life insurance.
In the insurance needs projections contained herein, we have analyzed the needs of the survivor if
one of the heads of the household were to die. On the death of the surviving spouse all the assets
held within the estate are passed on to your heirs. Investments that have incurred large capital
gains during your lifetime and registered assets (RRIFs) are subject to income tax. This amount
may be significant and it can dramatically reduce the net estate left to your heirs. It may force them
to sell assets such as a family vacation home in order to pay the taxes due on your estate. All of
these issues become even more complex and costly if you do not have a valid up-to-date will that
stipulates what you want to happen to your property in the event of your death.
In allocating your current financial resources, you must consider the cost of insurance and balance
these costs with your ability to fund other goals such as retirement, education, and any other
financial objectives.




August 19, 2012                                                                       Page 100 of 128
Types of Life Insurance
Life insurance is an important part of any financial plan. There are various types of insurance
policies available today. Each is designed to suit the coverage and investment requirements of
different clients. The following information provides a description of the main types of life insurance
policies available.

Term Insurance
The simplest form of insurance, term insurance, provides protection for a defined period such as
one, five, ten, fifteen or twenty years or until the insured reaches a certain age. Similar to your auto
policy, it provides a specific coverage for a specific period and has no cash value accumulation. If
the insured does not die during the period of protection, no benefits are payable at the expiration of
the policy or upon the insured’s subsequent death. In some cases, such as Term 100, it provides
permanent coverage. The focus of term insurance is exclusively on death coverage. Unlike whole
life insurance, premiums increase at the end of each renewal period as the insured person gets
older and the risk of death increases. Cost of this insurance at older ages is sometimes prohibitive.
Term insurance is generally best suited for insurance needs that are temporary (until the children
are grown) and relatively short-term in nature.

Whole Life Insurance
In contrast with term insurance, whole life is designed to provide protection for the whole life of the
insured regardless of when death occurs. Whole life policies have two components: the death
benefit, and a savings component called the cash value. Whole life is recommended when there is
a need for lifetime protection against financial needs and wealth preservation for current and future
estate needs. The insured pays the same fixed premium throughout their lifetime, and the death
benefit is guaranteed.

Universal Life
Similar to whole life insurance, universal life insurance policies provide lifetime protection and a
savings component through the investment of the premium payments. A distinguishing feature of
universal life insurance is its flexibility, which combines the low-cost protection of term insurance
while providing you with a savings component that is invested in a tax-deferred account; the cash
value may be available for a loan to you. Premiums, death benefits and payment schedules, can all
be varied to meet changing needs. The drawback, however, is that this policy has fewer guarantees
than the whole life policy. Premiums can increase or the death benefit can decrease (or both) if the
policy is not properly funded or if interest rates are lower than projected.




August 19, 2012                                                                         Page 101 of 128
Comparison of Life Insurance Products

Type                        Advantages                       Disadvantages
Term                        Low cost. Savings over           Premiums increase with age.
                            permanent policy may be          No cash value. No forced
                            invested.                        savings. Coverage may end
                                                             prior to death.
Whole Life                  Forced savings (tax-deferred).   Higher premiums than term.
                            Fixed premiums. Guaranteed       Investment return may be low.
                            cash value. Low-rate loans.
                            May receive dividends if a
                            participating policy.
Universal Life              Flexibility in premiums, face    Fewer guarantees than with
                            amount and amount into cash      whole life. Premiums may
                            value. Premium generally lower   increase if interest rates fall
                            than whole life policy.          below projections.




August 19, 2012                                                                   Page 102 of 128
If Anthony Dies (Proposed)
The following graph shows the impact on the cash flow and net worth of your immediate family if
Anthony were to die today.
         Pre-Retired
     Anthony                                                              Deceased
    Deborah            Pre-Retired                                                   Retired                                                   Deceased
       0.6M
                      Accumulated Surplus/ Deficit
       0.4M           Current Surplus/ Deficit
       0.2M
       0.0M
       -0.2M
       -0.4M
       -0.6M
       -0.8M
       -1.0M
       -1.2M
       -1.4M
               2009                      2013        2017   2021   2025       2029             2033      2037              2041         2045
       1.2M
                                                                                                        Total Net Worth
       1.0M                                                                                             Lifestyle Assets
       0.8M
       0.6M
       0.4M
       0.2M
       0.0M
       -0.2M
       -0.4M
       -0.6M
       -0.8M
               2009                      2013        2017   2021   2025       2029             2033      2037              2041         2045

If Anthony were to die this year a total of $10,000 would be paid out in existing insurance benefits.

The next graph shows the impact on your survivors if Anthony were to die today and any additional
life insurance required was implemented.
         Pre-Retired
     Anthony                                                              Deceased
    Deborah            Pre-Retired                                                   Retired                                                   Deceased
       600K
                      Accumulated Surplus/ Deficit
       500K           Current Surplus/ Deficit


       400K

       300K

       200K

       100K

         0K

       -100K
               2009                      2013        2017   2021   2025       2029             2033      2037              2041         2045
       1.8M
                      Total Net Worth
       1.6M           Lifestyle Assets

       1.4M

       1.2M

       1.0M

       0.8M

       0.6M

       0.4M

       0.2M

       0.0M
               2009                      2013        2017   2021   2025       2029             2033      2037              2041         2045

If Anthony were to die this year a total of $190,000 would be paid out in insurance benefits. This includes $10,000 in existing insurance
benefits as well as the additional recommended amount of $180,000.




August 19, 2012                                                                                                                   Page 103 of 128
Cash Flow Summary if Anthony Dies (Proposed)
The following report shows the major cash inflow and outflow items if Anthony were to die and the
family was to experience this loss of income.

                                                        After Tax         Total     Current        Accumulated
    Year      Age(s) Total Income        Total Tax       Income         Expenses Surplus/ Deficit Surplus/ Deficit
    2009        55/52       85,131             9,943         75,188         96,040              0                0
    2010        56/53       22,265                 0         22,265         38,251              0                0
    2011        57/54       24,098                 0         24,098         39,291              0                0
    2012        58/55       25,951                59         25,893         40,420              0                0
    2013        59/56       27,830               161         27,668         41,626              0                1
    2014        60/57       27,396               363         27,033         39,204              0                0
    2015        61/58       41,463             2,696         38,767         59,097              0                0
    2016        62/59       44,180             2,964         41,217         61,056              0                0
    2017        63/60       47,697             3,496         44,201         63,332              0                0
    2018        64/61       51,518             4,163         47,355         65,793              0                0
    2019        65/62       54,240             4,404         49,836         67,883              0                0
    2020        66/63       56,994             4,647         52,346         70,031              0                0
    2021        67/64       59,833             4,959         54,874         72,304              0                0
    2022        68/65       62,698             4,140         58,558         73,506              4                4
    2023        69/66       67,115             5,118         61,997         76,565              1                6
    2024        70/67       69,897             5,340         64,557         78,930          (10)               (4)
    2025        71/68       72,897             5,733         67,164         81,530            12                 8
    2026        72/69       75,781             5,961         69,821         84,032              0                8
    2027        73/70       78,731             6,193         72,538         86,607              0                9
    2028        74/71       81,898             6,273         75,625         89,099          (16)               (7)
    2030        76/73      148,193           38,372         109,821        148,193              0                3
    2035        81/78      171,667           44,356         127,312        171,668              0                1
    2040        86/83       41,627               791         40,837        148,380     (106,753)         (493,419)
    2045        91/88       48,258               910         47,348        172,006     (123,749)       (1,077,040)
    2046        92/89       49,706             1,007         48,699        177,237     (127,531)       (1,204,572)
If Anthony were to die this year a total of $10,000 would be paid out in existing insurance benefits.




August 19, 2012                                                                                         Page 104 of 128
Life Insurance Summary if Anthony Dies (Proposed)
This report compares the annual surpluses and deficits and net worth based on Anthony dying with
the current level of life insurance or dying with the additional recommended amount of insurance.
                                         Before New Coverage                       With Additional Coverage
                                       Surplus /     Total Net               Surplus /    Proceeds      Total Net
               Year       Ages         (Deficit)      Worth                  (Deficit)      Asset        Worth
               2009       55/52                    0     923,433                        0     180,000     1,103,433
               2010       56/53                    0     948,168                        0     180,367     1,138,682
               2011       57/54                    1     973,499                        0     180,802     1,175,187
               2012       58/55                    1     999,364                        0     181,308     1,212,995
               2013       59/56                    1   1,025,718                        0     181,886     1,252,159
               2014       60/57                    0   1,054,377                        0     181,233     1,294,599
               2015       61/58                    0   1,063,150                        0     181,963     1,318,710
               2016       62/59                    0   1,070,283                        0     182,772     1,342,455
               2017       63/60                    0   1,077,335                        0     183,806     1,367,302
               2018       64/61                    0   1,085,052                        0     185,272     1,394,179
               2019       65/62                    0   1,091,018                        0     186,982     1,420,808
               2020       66/63                    0   1,095,022                        0     188,940     1,447,091
               2021       67/64                    0   1,096,771                        0     191,156     1,472,922
               2022       68/65                    4   1,101,623                        0     194,184     1,503,513
               2023       69/66                    6   1,109,131                        0     197,726     1,538,576
               2024       70/67                  (4)   1,114,829                        0     201,554     1,573,923
               2025       71/68                    8   1,118,329                        0     205,671     1,609,489
               2026       72/69                    8   1,119,543                        0     206,108     1,645,698
               2027       73/70                    9   1,118,205                        0     210,867     1,681,604
               2028       74/71                  (7)   1,114,182                        0     215,983     1,717,492
               2029       75/72                    2   1,089,421                        0     216,456     1,742,022
               2030       76/73                    3   1,022,909                        0     218,116     1,739,433
               2031       77/74                    2     947,962                        0     219,892     1,733,255
               2032       78/75                    2     863,903                        0     221,788     1,723,111
               2033       79/76                    1     770,010                        0     215,628     1,710,104
               2034       80/77                    2     665,510                        0     209,026     1,692,734
               2035       81/78                    1     549,582                        0     223,569     1,666,468
               2036       82/79            (84,650)      463,319                        0     239,091     1,633,754
               2037       83/80           (182,358)      376,571                        0     255,623     1,593,947
               2038       84/81           (283,009)      287,099                        0     273,198     1,546,355
               2039       85/82           (386,666)      194,844                        0     291,844     1,490,231
               2040       86/83           (493,419)        99,722                       0     311,607     1,417,570
               2041       87/84           (603,360)         1,642                       2     333,419     1,300,002
               2042       88/85           (716,587)      (99,484)                       2     356,759     1,167,640
               2043       89/86           (833,197)    (203,752)                       10     381,732     1,019,266
               2044       90/87           (953,292)    (311,258)                        0     289,054       931,088
               2045       91/88         (1,077,040)    (422,166)                        0     180,542       835,416
               2046       92/89         (1,204,572)    (536,599)                        0      62,357       730,329
               2047       93/90           (690,452)    (690,452)                579,636             0       579,636
This report shows a before and after picture of Deborah's cash flow in the event of Anthony's death at the end of 2009. Insuring Anthony
for an additional $180,000 allows Deborah's future cash flow shortfalls to be met. This report assumes that the proceeds of the additional
coverage are invested into a cash account that earns 7.00%.
Note: An increase in Total Net Worth when the new coverage is applied may be due to the following factors:
          (1) Any additional coverage is rounded up to the nearest $10,000
          (2) Some assets may not be scheduled to cover deficits before Deborah retires (e.g. RRSPs)




August 19, 2012                                                                                                      Page 105 of 128
If Deborah Dies (Proposed)
The following graph shows the impact on the cash flow and net worth of your immediate family if
Deborah were to die today.
     Anthony          Pre-Retired                                                       Retired                               Deceased
         Pre-Retired
    Deborah                                                                  Deceased
       800K
                  Accumulated Surplus/ Deficit
       700K       Current Surplus/ Deficit
       600K

       500K

       400K

       300K

       200K

       100K

         0K

       -100K
               2009                  2013        2017   2021          2025              2029       2033   2037      2041
       1.6M
                  Total Net Worth
       1.4M       Lifestyle Assets

       1.2M

       1.0M

       0.8M

       0.6M

       0.4M

       0.2M

       0.0M
               2009                  2013        2017   2021          2025              2029       2033   2037      2041

If Deborah were to die this year a total of $0 would be paid out in existing insurance benefits.

Our analysis indicates that Deborah’s current life insurance coverage is sufficient to provide for
Anthony’s needs in the event of Deborah’s untimely death. Additional coverage may be required to
address your estate planning needs or if your needs should change in the future.




August 19, 2012                                                                                                  Page 106 of 128
Cash Flow Summary if Deborah Dies (Proposed)
The following report shows the major cash inflow and outflow items if Deborah were to die and the
family was to experience this loss of income.

                                                         After Tax        Total     Current        Accumulated
     Year     Age(s) Total Income         Total Tax       Income        Expenses Surplus/ Deficit Surplus/ Deficit
     2009       55/52       80,025            10,588          69,437        86,685              0                0
     2010       56/53       38,760              5,259         33,501        42,128            (2)              (2)
     2011       57/54       40,230              5,513         34,716        43,487            (7)              (9)
     2012       58/55       42,434              5,903         36,531        45,103              4              (5)
     2013       59/56       43,194              5,882         37,311        46,166            (2)              (7)
     2014       60/57       47,978              7,919         40,059        47,971              7                0
     2015       61/58       44,073              3,606         40,467        60,220              0                0
     2016       62/59       46,713              3,846         42,867        62,152              0                0
     2017       63/60       49,377              4,087         45,290        64,136              0                0
     2018       64/61       52,067              4,330         47,737        66,174              0                0
     2019       65/62       56,395              4,257         52,139        67,736              3                3
     2020       66/63       59,264              4,575         54,690        69,958              0                4
     2021       67/64       61,921              4,792         57,129        72,137              0                4
     2022       68/65       64,619              5,012         59,608        74,377              0                5
     2023       69/66       67,361              5,234         62,127        76,680              0                6
     2024       70/67       70,270              5,605         64,665        79,195              0                6
     2025       71/68       73,127              5,852         67,275        81,650              2                8
     2026       72/69       86,873            12,640          74,233        90,712            (8)                0
     2027       73/70       89,539            12,872          76,667        93,286              0                0
     2028       74/71       92,276            13,110          79,167        95,936              0                0
     2030       76/73      121,604            18,098         103,507       127,918              0              (1)
     2035       81/78      142,402            20,363         122,040       147,675              1                0
     2040       86/83      166,087            22,869         143,217       170,459            (6)              (7)
     2043       89/86      181,894            24,505         157,388       185,781              0              (8)
If Deborah were to die this year a total of $0 would be paid out in existing insurance benefits.




August 19, 2012                                                                                     Page 107 of 128
                  Estate Planning




August 19, 2012              Page 109 of 128
Estate Planning Overview
Estate planning is an essential part of any financial plan. Many people believe that estate planning
is only for the wealthy. This is simply not true. You need an estate plan to dictate your final wishes.
An estate plan allows you to decide how your assets are distributed both during your lifetime and at
your death. Your estate plan should be structured to achieve your personal objectives and also
maximize the wealth passed onto heirs and charities while reducing taxes and other expenses.
Estate planning begins with a consideration of the following questions:
      Who should receive your assets? Should it be your children, grandchildren, friends or
       charity?
      Do you want to transfer your assets during your lifetime as well as at death?
      Who do you want to take care of minor children if you were to die prematurely?
      What are the needs of your survivors?
      Do you have a will? Does it meet your current personal objectives and is it structured
       properly to minimize taxes and expenses?
      Do you have beneficiary designations on your life insurance policies and retirement plans?
      How are your major assets titled? Are they solely owned or are they jointly owned? Do
       jointly owned assets automatically transfer to the survivor upon your death or does it pass
       through your will?
When preparing an estate plan, it is helpful to understand some of the legal documents, concepts
and strategies. The following information is intended to help you understand this important process
in managing your finances. You should seek the advice of a professional in this area when drafting
these types of documents and implementing these strategies.

Last will and testament
A will is likely the most important part of your estate plan even if your estate is a small one. It is a
legal document that lets you direct how your assets will be transferred when you die. It becomes
effective only after your death. In addition to saying who gets what, it allows you to name an
executor for your estate and to designate a guardian for your minor children. A will also provides an
opportunity to minimize estate taxes and probate costs.
If you die without a will, you are considered to be “intestate” and the law will dictate who gets your
assets upon your death and who will look after your minor children. These decisions may be against
you wishes and leave certain loved ones in financial hardship.
Your will should be updated regularly to reflect major changes that occur during your lifetime such
as marriage or the birth of a child.

Power of Attorney
A power of attorney can be used to grant an individual control over your financial affairs, any
medical or health decisions or both. A general power of attorney is a legal document that you sign
to appoint an individual, usually someone close to you that you can trust, full and complete rights to
act as your agent over all of your affairs. A general power of attorney is no longer valid if revoked by
you or you die or become incapacitated, leaving your affairs to be managed by a court appointed
agent.
Since a power of attorney ends if you become incapacitated, you may want to consider a durable
power of attorney (also referred to as a continuing or enduring power of attorney). A durable power
August 19, 2012                                                                         Page 110 of 128
of attorney remains effective if you become mentally or physically incapacitated and is only
invalidated upon your death or your revocation. A durable power of attorney can be effective
immediately or upon the triggering of a specific event (a springing power of attorney) and can be
used to specify someone (a health care proxy) to make medical and health decisions on your
behalf, should you become incapacitated.
The requirements for powers of attorney vary province by province, therefore it is advisable to
consult with an attorney, particularly if you own property or live in multiple provinces. It is a wise
idea to consider a power of attorney of any kind when you are in the process of updating or creating
your will, as it is always best to have these in place before you actually need them.

Living Wills
As mentioned above, a durable power of attorney can be used to grant powers to a health care
proxy (someone who you entrust with your health and personal care) with respect to certain medical
decisions should you become incapacitated. However, depending on the nature of the power of
attorney it may not provide any guidance to your health care proxy on your specific health care
wishes. In contrast, livings wills (also referred to as Health Care Directives or Power of Attorney for
Personal Care) are legal documents which outline your wishes as to whether or not you wish any
life sustaining medical procedures to be applied should you become unable to communicate your
own wishes yourself (for example “Do Not Resuscitate” orders). By specifically outlining your
wishes in the document, your loved ones will not have to be burdened with the stress of making a
major medical decision on your behalf without having the benefit of knowing your intentions in
advance.

Taxes and Other Estate Expenses
If your estate is significant, the taxes paid at death may also be significant. In addition to income tax
due, there is also probate and administrative expenses that need to be paid. These items are likely
the largest expenses your estate may have to pay. Proper planning can minimize the amount of
taxes and expenses that need to be paid and allow you to transfer more of your assets according to
your wishes.

Trusts in Estate Planning
Testamentary Trusts
A testamentary trust is a trust that is created upon your death and is settled by your will. Income
that is earned and taxed within a testamentary trust is taxed at your marginal rates. This allows you
to take advantage of the lower tax brackets. These trusts are useful if the beneficiaries of your
estate are already in the highest tax bracket. Trusts can be established for the benefit of the
beneficiaries and the income can be taxed in the trust instead of in the hand of the beneficiaries,
taking full advantage of the lower tax brackets.

   Spousal trusts
   A Spousal Trust is a trust that is created on the death of the first spouse. The trust is settled for
   the benefit of the surviving spouse who is entitled to all of the income during his or her lifetime
   and no one but the spouse can access the trust capital. Typically, the assets of the spousal trust
   then pass to the children upon the death of the surviving spouse. Income earned by the spousal
   trust is taxed at the marginal rates and therefore full advantage of the lower tax brackets can be
   taken.



August 19, 2012                                                                          Page 111 of 128
   Inter-vivos Trusts
   Inter-vivos trusts are created during your lifetime when you transfer property to the trust. They
   generate some benefits such as probate fee planning and creditor proofing. However, to the
   extent income is recognized within the trust, the income is taxed at the highest marginal
   personal rate. In addition, transferring the property to the trust may trigger personal income tax
   to you on any unrealized gains. Disposing of your assets via your will can be subject to
   challenge by the estate beneficiaries. Instead, transferring your assets during your lifetime into
   an inter-vivos trust can ensure that your assets will pass to the intended beneficiaries.
   They can be discretionary or non-discretionary (i.e. the ability to decide on an annual basis
   whether or not any trust income or property will be distributed to the trust beneficiaries). When
   the trust is created, different income and capital beneficiaries can be named, however special
   tax rules apply to minor children.
       Alter-ego or joint partner trusts - The main benefit of these trusts is the avoidance of
       probate fees on the assets within the trust upon your death. You must be at least 65 years
       of age and be entitled to receive all of the income from the trust during your lifetime. You
       must be the income beneficiary of an alter-ego trust, whereas the income beneficiary of a
       joint partner trust must be both you and your spouse. Unrealized gains on assets that are
       transferred into these trusts are not subject to income tax in the year of the transfer.
       Family Trusts - Family trusts are used as a common tool in estate freezing techniques. A
       trust is established to own property (usually shares of a family corporation) and certain
       family members are named as income or capital beneficiaries of the trust, or both. The
       primary benefit of these techniques is to freeze your value in the stock on the date of the
       transfer and pass along any future appreciation to your family members.
   Any time a trust is considered in estate planning, you should consult with your attorney as trust
   provisions and rules vary from province to province.

Minimizing Estate Shrinkage
All of the taxes and expenses noted above must be paid before your estate can be distributed to
your beneficiaries. This means that the value of your estate can shrink considerably before it
reaches your beneficiaries. Proper estate planning can reduce the amount of this shrinkage through
use of a number of techniques, including properly drafted wills and trusts.

Registered Plans
Funds distributed from any registered retirement plan (including annuities, RRSPs, RRIFs, etc.) at
the death of the owner are subject to income tax on the distribution in addition to any other estate
expenses previously imposed. All distributions from registered plans in a particular year are
aggregated to determine the amount subject to tax. The Estate is responsible for paying this tax
regardless of who the beneficiary is.




August 19, 2012                                                                      Page 112 of 128
Estate Analysis (Current)
This report illustrates the effect of both of you dying in a given year, in your current plan. It displays
your pro-forma net worth (your net worth immediately prior to your death), your estate before taxes
and expenses, any taxes and expenses which are triggered by your death, your final estate and the
estate shrinkage.

                                  2009:55/52       2019:65/62       2029:75/72       2039:85/82       2049:95/92
 Non-Registered
 Scotia McLeod Portfolio               451,712         498,069          270,834                   0                0
   Subtotal                            451,712         498,069          270,834                   0                0

 Registered
 Scotia McLeod MF Portfolio             67,009         131,817          208,887          180,676                   0
 Scotia McLeod MF Portfolio             60,137         118,298          216,063           19,976                   0
   Subtotal                            127,146         250,115          424,950          200,651                   0

 Lifestyle
 Anthony & Deborah's House             321,035         391,339          477,041          581,510                   0
    Subtotal                           321,035         391,339          477,041          581,510                   0

 Surplus/(Deficit)                             0                1            (1)              (1)            7,022

 Pro-Forma Net Worth                   899,893        1,139,524        1,172,823         782,160             7,022

 Insurance Proceeds
 Anthony Klient                         10,000                  0                0                0                0
   Subtotal                             10,000                  0                0                0                0

 Death Benefits
 CPP/QPP Death Benefits                        0          5,000            5,000            5,000                  0
   Subtotal                                    0          5,000            5,000            5,000                  0

 Estate Before Taxes & Expenses        909,893        1,144,524        1,177,823         787,160             7,022

 Additional Income Taxes               (91,925)       (177,731)        (233,704)         (74,605)                  0

 Net Estate                            817,968         966,793          944,120          712,555             7,022

 Final Estate                          817,968         966,793          944,120          712,555             7,022

 Estate Shrinkage ($)                   81,925         172,731          228,704            69,605                  0
 Estate Shrinkage (%)                        9              15               20                 9                  0




August 19, 2012                                                                                   Page 113 of 128
Estate Analysis (Proposed)
This report illustrates the effect of both of you dying in a given year, in our proposed plan. It
displays your pro-forma net worth (your net worth immediately prior to your death), your estate
before taxes and expenses, any taxes and expenses which are triggered by your death, your final
estate and the estate shrinkage.

                                 2009:55/52       2019:65/62       2029:75/72       2039:85/82       2049:95/92
Non-Registered
Scotia McLeod Portfolio              438,629          569,292          436,540          399,797                   0
  Subtotal                           438,629          569,292          436,540          399,797                   0

Registered
Scotia McLeod MF Portfolio            67,009          131,817          208,887          180,676                   0
Scotia McLeod MF Portfolio            98,443          221,194          403,996          349,434                   0
  Subtotal                           165,453          353,011          612,883          530,110                   0

Lifestyle
Anthony & Deborah's House            321,035          391,339          477,041          581,510                   0
   Subtotal                          321,035          391,339          477,041          581,510                   0

Surplus/(Deficit)                             0                1                0            (3)         808,271

Pro-Forma Net Worth                  925,116         1,313,644        1,526,462        1,511,414         808,271

Insurance Proceeds
Anthony Klient                        10,000                   0                0                0                0
  Subtotal                            10,000                   0                0                0                0

Death Benefits
CPP/QPP Death Benefits                        0          5,000            5,000            5,000                  0
  Subtotal                                    0          5,000            5,000            5,000                  0

Estate Before Taxes & Expenses       935,116         1,318,644        1,531,462        1,516,414         808,271

Additional Income Taxes             (107,758)        (237,876)        (356,926)        (308,413)                  0

Estate Expenses
Burial Expense                       (12,299)         (16,528)         (22,213)         (29,852)                  0
Burial Expense                       (12,299)         (16,528)         (22,213)         (29,852)                  0
  Subtotal                           (24,597)         (33,057)         (44,426)         (59,705)                  0

Net Estate                           802,760         1,047,711        1,130,111        1,148,297         808,271

Final Estate                         802,760         1,047,711        1,130,111        1,148,297         808,271

Estate Shrinkage ($)                 122,356          265,933          396,351          363,117                   0
Estate Shrinkage (%)                      13               20               26               24                   0




August 19, 2012                                                                                  Page 114 of 128
                  Action Plan




August 19, 2012          Page 115 of 128
Action Plan
The action plan is a blueprint that you can follow, which details the steps to be taken over the next
three years to implement our proposed plan.
Activity for 2009

Savings:
Asset                              Contributor      Amount Comment
Scotia McLeod MF Portfolio         Deborah           $3,600 Regular Savings Plan ($300/month)
(Deborah/RRSP)
Total                                                $3,600

Insurance:
Policy                             Payor           Premium Coverage
Anthony Klient(Life Insurance)     Anthony            $214 Life Insurance Premiums (once a year)
Total                                                 $214


Activity for 2010

Savings:
Asset                              Contributor      Amount Comment
Scotia McLeod MF Portfolio         Deborah           $3,600 Regular Savings Plan ($300/month)
(Deborah/RRSP)
Total                                                $3,600

Insurance:
Policy                             Payor           Premium Coverage
Anthony Klient(Life Insurance)     Anthony            $214 Life Insurance Premiums (once a year)
Total                                                 $214


Activity for 2011

Savings:
Asset                              Contributor      Amount Comment
Scotia McLeod MF Portfolio         Deborah           $3,600 Regular Savings Plan ($300/month)
(Deborah/RRSP)
Total                                                $3,600

Insurance:
Policy                             Payor           Premium Coverage
Anthony Klient(Life Insurance)     Anthony            $214 Life Insurance Premiums (once a year)
Total                                                 $214




August 19, 2012                                                                          Page 116 of 128
Conclusion
Now that you have a detailed report on both your current and proposed analysis, where do you go
from here? Our recommendations are as follows:
1. Review this document and ensure you understand the information contained in the report.
   Particularly, the Action Plan. Be sure to ask us questions on areas that need clarification.
2. Implement the plan. We will discuss a schedule to implement the action plan items we agreed
   upon. We need to establish a reliable follow-up method for those strategies that start at a future
   date. Make sure it is clear who will be responsible for implementing the task. Which items are
   you responsible for initiating? Which actions are the responsibilities of your other professional
   advisors – attorney, accountant, etc.? A checklist for these tasks is useful.
3. Review your plan on a regular basis, generally once a year. In addition, review it whenever a
   major change occurs in your family (e.g. changes in employment, birth of a child, new income or
   expenses, etc.). You may need to adjust your plan in light of any of these new circumstances.


One final thought!
Remember to maintain a long-term focus with your plan. Do not expect to anticipate every curve in
the road but be prepared to adjust your plan when necessary. Your financial plan is not a single
event but a journey that may cover ten, twenty, thirty years or longer.




August 19, 2012                                                                      Page 117 of 128
                  Appendices




August 19, 2012         Page 119 of 128
Appendix: Plan Data Summary (Current)
This report provides a summary of the data that was entered in creating your current plan.
General Information
Detail                                                       Anthony                Deborah
Birth Date                                                      Jan 5 1954            Jul 29 1957
Proposed Retirement Date                                          Jan 2014               Jul 2013
Critical Illness Date                                                Never                  Never
Life Expectancy                                                  Dec 2044               Dec 2047
CPP/QPP Benefits start on                                        Feb 2014               Aug 2017
OAS Benefits start on                                            Feb 2019               Aug 2022
Qualify for % of Max. CPP/QPP Benefits                               100%                    50%
Qualify for % of OAS Benefits                                        100%                   100%
Earned Income (2008)                                               $30,400                $41,792
Unused RRSP Deduction Room                                         $53,819                $68,851
CNIL from (2008)                                                     -$263                  -$263


Assumptions
Detail
Return on Excess Cash Flow:                 0.00%
Interest rate applied to Deficits:          0.00%
Inflation Rate                              3.00%


Estate Assumptions
Detail
Does Anthony have a will?                   Yes - Revised: Jul 30 2001
Does Deborah have a will?                   Yes - Revised: Jul 30 2001
Where are the wills kept?                   Lawyers office - Chris Little


Dependants
Name                                   Birth Date             Age as of Plan Date
Gary                                  Aug 3 1987                      21
Rob                                   May 12 1989                     19




Professional Advisors
Type                                     Name                  Business      Cell Phone #
                                                               Phone #
Lawyer                                 Chris Little          519-235-0670
Accountant                             Jim Hoare             519-433-9231
Financial Advisor                    Mike Skochinski         519-660-3254
Insurance Broker                 Dorothy Beverman            519-235-1109


Regular Income
Income Source                    Member                 Applicable                    Amount    Indexed
Employment Salary                Anthony         Jan 1 2002 to Dec 31 2013            $25,459   Inflation
Employment Salary                Deborah         Jan 1 2002 to Jun 30 2013            $35,000   Inflation




August 19, 2012                                                                                             Page 120 of 128
Regular Expenses
                                                                    While       While    While        Annual
Expense                          Member    Start Date    End Date Working      Retired Survivor      Amount     Indexed
Property Taxes                   Anthony   Jan 1 2002       Dec 31  100%        100%      100%        $3,284    Inflation
                                                              2029
House Insurance                  Anthony   Jan 1 2002       Dec 31  100%         100%         100%     $738     Inflation
                                                              2029
Utilities                        Anthony   Jan 1 2002       Dec 31  100%           75%        75%     $6,863    Inflation
                                                              2029
maintenacne & Repairs            Anthony   Jan 1 2002       Dec 31  100%         100%         100%     $738     Inflation
                                                              2029
Food                             Anthony   Jan 1 2002       Dec 31  100%           60%        40%     $7,379    Inflation
                                                              2029
Telephone                        Anthony   Jan 1 2002       Dec 31  100%         100%         75%     $2,524    Inflation
                                                              2029
Clothing                         Anthony   Jan 1 2002       Dec 31  100%           75%        50%     $4,428    Inflation
                                                              2029
Meidcal/Dental                   Anthony   Jan 1 2002       Dec 31  100%         100%         50%     $2,952    Inflation
                                                              2029
Education                        Anthony   Jan 1 2002   Jan 5 2029  100%            0%        100%    $3,380    Inflation
School - Mike                    Anthony   Jan 1 2002   Jun 1 2005  100%           75%         50%    $4,200    Inflation
Car Insurance                    Anthony   Jan 1 2002       Dec 31  100%           75%         50%    $1,697    Inflation
                                                              2029
Gas/maintenance                  Anthony   Jan 1 2002       Dec 31  100%           75%        50%     $5,018    Inflation
                                                              2029
Vacation                         Anthony   Jan 1 2002       Dec 31  100%         100%         50%     $4,428    Inflation
                                                              2029
cable/TV                         Anthony   Jan 1 2002       Dec 31  100%         100%         100%     $605     Inflation
                                                              2029
Charitable donations             Anthony   Jan 1 2002       Dec 31  100%           75%        50%     $1,254    Inflation
                                                              2029
dining out                       Anthony   Jan 1 2002       Dec 31  100%           75%        50%     $4,059    Inflation
                                                              2029
Entertainment                    Anthony   Jan 1 2002       Dec 31  100%           75%        50%     $5,313    Inflation
                                                              2029
Other Lifestyle Expense          Anthony   Jan 1 2002       Dec 31  100%           75%        50%      $664     Inflation
                                                              2029
Passive Retirement               Anthony   Jan 1 2030          N/A    0%         100%         100%   $59,034    Inflation
Expenses (75% of
active)
increase to 62K per              Anthony   Jan 1 2014      Dec 31        0%      100%         100%   $16,972    Inflation
year                                                        2029


Surplus Expenses
Surplus Of                       Percentage                   Applicable
Anthony and Deborah                   100% Jan 1 2002 to Dec 31 2046 (the latter of Anthony
                                            and Deborah's Deceased Date minus 1 years)


Lifestyle Assets
                                           Purchase       Purchase        Market        Market       Growth     Standard
                                                                                                            1
Asset Name                                   Date          Amount     Value Date         Value         Rate     Deviation
Anthony & Deborah's House                  May 1 1979      $54,000    Jan 1 2009      $314,740         2.0%         0.0%
(Joint/Lifestyle)

1
 The growth rate is a pre-tax amount




August 19, 2012                                                                                       Page 121 of 128
Individual Stocks
                                        Purchase          Purchase           Market        Market                        Growth
Asset Name                                Date              Amount       Value Date         Value       Dividend           Rate
Scotia McLeod Portfolio (Joint/Non-    Dec 31 2001         $250,000      Jan 1 2009      $418,252           $0.00          8.0%
Reg.)


Cash Accounts
                                                                   Opening       Current     Interest    Standard
Asset Name                                     Date                Balance       Balance        Rate     Deviation
Life Insurance Proceeds (Joint/Non-Reg.)       Jan 1 2002               $0            $0        4.0%         0.0%


Portfolio Assets
                                                                                      Cap.    Def.      Std.
                               Market        Market                    Int.   Div.    Gain Growth       Dev. Total
Asset Name                 Value Date         Value Cost Base          (%)     (%)     (%)     (%)       (%)  (%)
Scotia McLeod MF Portfolio Jan 1 2009       $62,625        $0         0.00    0.00    0.00    7.00      0.00 7.00
(Anthony/RRSP)
Scotia McLeod MF Portfolio Jan 1 2009       $56,202      $35,000      0.00    0.00    0.00     7.00     0.00     7.00
(Deborah/RRSP)

The Portfolio Asset section includes your major investment assets. It contains the market value and
cost basis of these assets. Your total pre-tax growth rate is broken down into specific return rate
types as some of these items receive special tax treatment. The actual total return rates that you
will receive will depend on many factors including inflation, type of investment and market
conditions.

Life Insurance Policies

Description:                                   Anthony Klient
Policy Type:                                   Permanent Life             Owner:                               Anthony
Effective Date:                                  Dec 31 2001              Insured:                             Anthony
Death Benefit:                                       $10,000              Beneficiary:                         Deborah
Cash Surrender Value (CSV):                           $4,630              Premium Payer:                       Anthony
                                                                          Annual Premium
Premiums cease on:                                    Jan 5 2019          Payments:                             $214
CSV payable with Death Benefit:                               No          Coverage ceases on:             Jan 5 2019
Death Benefit payable when                                                Disability Waiver:                     Yes
                                                            Yes
coverage ceases:



Transfer Strategies
Source Asset                Destination Asset                      Amount                                  When
Anthony Klient              Life Insurance Proceeds                  100%                             Upon Death



Transfers specify a plan for moving your investments from one type of asset to another on specific
dates or events such as retirement. Also, transfers will be desirable in some cases to move from
one type of investment to another type at a certain point in time. Refer to your Action Plan for the
years in which transfers are scheduled to view the projected amounts to be transferred.

Deficit Coverage Strategies
Asset Name                                            Applicable
Scotia McLeod Portfolio (Joint/Non-Reg.)       Jan 1 2002 to Dec 31 2047
August 19, 2012                                                                                          Page 122 of 128
Asset Name                                       Applicable
Scotia McLeod MF Portfolio                       While Retired
(Anthony/RRSP)
Scotia McLeod MF Portfolio                       While Retired
(Deborah/RRSP)
Life Insurance Proceeds (Joint/Non-Reg.)   Jan 1 2002 to Dec 31 2047



The assets listed are available for redemption to meet cash flow needs. The Applicable column
indicates the period of time these assets are available. Typically, registered assets are not available
during your working years.




August 19, 2012                                                                        Page 123 of 128
Appendix: Plan Data Summary (Proposed)
This report provides a summary of the data that was entered, and the strategies that were
implemented, in creating your proposed plan.
General Information
Detail                                                       Anthony                Deborah
Birth Date                                                      Jan 5 1954            Jul 29 1957
Proposed Retirement Date                                          Jan 2015               Jul 2014
Critical Illness Date                                                Never                  Never
Life Expectancy                                                  Dec 2044               Dec 2047
CPP/QPP Benefits start on                                        Feb 2014               Aug 2017
OAS Benefits start on                                            Feb 2019               Aug 2022
Qualify for % of Max. CPP/QPP Benefits                               100%                    50%
Qualify for % of OAS Benefits                                        100%                   100%
Earned Income (2008)                                               $30,400                $41,792
Unused RRSP Deduction Room                                         $53,819                $43,651
CNIL from (2008)                                                     -$621                  -$621


Assumptions
Detail
Return on Excess Cash Flow:                 0.00%
Interest rate applied to Deficits:          0.00%
Inflation Rate                              3.00%


Estate Assumptions
Detail
Does Anthony have a will?                   Yes - Revised: Jul 30 2001
Does Deborah have a will?                   Yes - Revised: Jul 30 2001
Where are the wills kept?                   Lawyers office - Chris Little


Dependants
Name                                   Birth Date             Age as of Plan Date
Gary                                  Aug 3 1987                      21
Rob                                   May 12 1989                     19




Professional Advisors
Type                                     Name                  Business      Cell Phone #
                                                               Phone #
Lawyer                                 Chris Little          519-235-0670
Accountant                             Jim Hoare             519-433-9231
Financial Advisor                    Mike Skochinski         519-660-3254
Insurance Broker                 Dorothy Beverman            519-235-1109


Regular Income
Income Source                    Member                 Applicable                    Amount    Indexed
Employment Salary                Anthony         Jan 1 2002 to Dec 31 2014            $25,459   Inflation
Employment Salary                Deborah         Jan 1 2002 to Jun 30 2014            $35,000   Inflation



August 19, 2012                                                                                             Page 124 of 128
Regular Expenses
                                                             While       While    While         Annual
Expense                   Member    Start Date    End Date Working      Retired Survivor       Amount       Indexed
Property Taxes            Anthony   Jan 1 2002       Dec 31  100%        100%      100%         $3,284      Inflation
                                                       2029
House Insurance           Anthony   Jan 1 2002       Dec 31  100%         100%         100%          $738   Inflation
                                                       2029
Utilities                 Anthony   Jan 1 2002       Dec 31  100%          75%         75%       $6,863     Inflation
                                                       2029
maintenacne & Repairs     Anthony   Jan 1 2002       Dec 31  100%         100%         100%          $738   Inflation
                                                       2029
Food                      Anthony   Jan 1 2002       Dec 31  100%          60%         40%       $7,379     Inflation
                                                       2029
Telephone                 Anthony   Jan 1 2002       Dec 31  100%         100%         75%       $2,524     Inflation
                                                       2029
Clothing                  Anthony   Jan 1 2002       Dec 31  100%          75%         50%       $4,428     Inflation
                                                       2029
Meidcal/Dental            Anthony   Jan 1 2002       Dec 31  100%         100%         50%       $2,952     Inflation
                                                       2029
Education                 Anthony   Jan 1 2002   Jan 5 2029  100%           0%         100%      $3,380     Inflation
School - Mike             Anthony   Jan 1 2002   Jun 1 2005  100%          75%          50%      $4,200     Inflation
Car Insurance             Anthony   Jan 1 2002       Dec 31  100%          75%          50%      $1,697     Inflation
                                                       2029
Gas/maintenance           Anthony   Jan 1 2002       Dec 31  100%          75%         50%       $5,018     Inflation
                                                       2029
Vacation                  Anthony   Jan 1 2002       Dec 31  100%         100%         50%       $4,428     Inflation
                                                       2029
cable/TV                  Anthony   Jan 1 2002       Dec 31  100%         100%         100%          $605   Inflation
                                                       2029
Charitable donations      Anthony   Jan 1 2002       Dec 31  100%          75%         50%       $1,254     Inflation
                                                       2029
dining out                Anthony   Jan 1 2002       Dec 31  100%          75%         50%       $4,059     Inflation
                                                       2029
Entertainment             Anthony   Jan 1 2002       Dec 31  100%          75%         50%       $5,313     Inflation
                                                       2029
Other Lifestyle Expense   Anthony   Jan 1 2002       Dec 31  100%          75%         50%           $664   Inflation
                                                       2029
Passive Retirement        Anthony   Jan 1 2030          N/A    0%         100%         100%     $59,034     Inflation
Expenses (75% of
active)
increase to 62K per       Anthony   Jan 1 2015      Dec 31        0%      100%         100%     $16,972     Inflation
year                                                 2029


Lump Sum Expenses
Expense                      Member            Applicable                   Amount      Indexed
Burial Expense               Anthony Dec 31 2044 (Anthony's Deceased        $12,299     Inflation
                                                  Date)
Burial Expense               Deborah Dec 31 2047 (Deborah's Deceased         $12,299     Inflation
                                                  Date)


Surplus Expenses
Surplus Of                Percentage                   Applicable
Anthony and Deborah            100% Jan 1 2002 to Dec 31 2046 (the latter of Anthony
                                     and Deborah's Deceased Date minus 1 years)




August 19, 2012                                                                                  Page 125 of 128
Lifestyle Assets
                                        Purchase        Purchase          Market         Market         Growth      Standard
                                                                                                               1
Asset Name                                Date           Amount       Value Date          Value           Rate      Deviation
Anthony & Deborah's House               May 1 1979       $54,000      Jan 1 2009       $314,740           2.0%          0.0%
(Joint/Lifestyle)

1
The growth rate is a pre-tax amount



Individual Stocks
                                        Purchase         Purchase           Market        Market                         Growth
Asset Name                                Date             Amount       Value Date         Value        Dividend           Rate
Scotia McLeod Portfolio (Joint/Non-    Dec 31 2001        $250,000      Jan 1 2009      $406,138            $0.00          8.0%
Reg.)


Cash Accounts
                                                                  Opening       Current      Interest   Standard
Asset Name                                    Date                Balance       Balance         Rate    Deviation
Life Insurance Proceeds (Joint/Non-Reg.)      Jan 1 2002               $0            $0         4.0%        0.0%


Portfolio Assets
                                                                                     Cap.    Def.       Std.
                               Market       Market                    Int.   Div.    Gain Growth        Dev. Total
Asset Name                 Value Date        Value Cost Base          (%)     (%)     (%)     (%)        (%)  (%)
Scotia McLeod MF Portfolio Jan 1 2009      $62,625        $0         0.00    0.00    0.00    7.00       0.00 7.00
(Anthony/RRSP)
Scotia McLeod MF Portfolio Jan 1 2009      $88,514      $60,200      0.00    0.00    0.00      7.00     0.00     7.00
(Deborah/RRSP)

The Portfolio Asset section includes your major investment assets. It contains the market value and
cost basis of these assets. Your total pre-tax growth rate is broken down into specific return rate
types as some of these items receive special tax treatment. The actual total return rates that you
will receive will depend on many factors including inflation, type of investment and market
conditions.

Life Insurance Policies

Description:                                  Anthony Klient
Policy Type:                                  Permanent Life             Owner:                                Anthony
Effective Date:                                 Dec 31 2001              Insured:                              Anthony
Death Benefit:                                      $10,000              Beneficiary:                          Deborah
Cash Surrender Value (CSV):                          $4,630              Premium Payer:                        Anthony
                                                                         Annual Premium
Premiums cease on:                                   Jan 5 2019          Payments:                              $214
CSV payable with Death Benefit:                              No          Coverage ceases on:              Jan 5 2019
Death Benefit payable when                                               Disability Waiver:                      Yes
                                                           Yes
coverage ceases:



Regular Savings Strategies
Asset Name                                           Applicable                              Amount      Indexed
Scotia McLeod MF Portfolio                    Jan 1 2002 to Dec 31 2014                     $0/Month        No
(Anthony/RRSP)

August 19, 2012                                                                                          Page 126 of 128
Asset Name                                              Applicable             Amount    Indexed
Scotia McLeod MF Portfolio                       Jan 1 2002 to Jun 1 2014   $300/Month      No
(Deborah/RRSP)

The table above includes all your periodic (annual or monthly) investment contributions.


Transfer Strategies
Source Asset                 Destination Asset                   Amount                  When
Anthony Klient               Life Insurance Proceeds               100%             Upon Death



Transfers specify a plan for moving your investments from one type of asset to another on specific
dates or events such as retirement. Also, transfers will be desirable in some cases to move from
one type of investment to another type at a certain point in time. Refer to your Action Plan for the
years in which transfers are scheduled to view the projected amounts to be transferred.

Deficit Coverage Strategies
Asset Name                                             Applicable
Scotia McLeod Portfolio (Joint/Non-Reg.)        Jan 1 2002 to Dec 31 2047
Scotia McLeod MF Portfolio                            While Retired
(Anthony/RRSP)
Scotia McLeod MF Portfolio                             While Retired
(Deborah/RRSP)
Life Insurance Proceeds (Joint/Non-Reg.)        Jan 1 2002 to Dec 31 2047



The assets listed are available for redemption to meet cash flow needs. The Applicable column
indicates the period of time these assets are available. Typically, registered assets are not available
during your working years.




August 19, 2012                                                                          Page 127 of 128
Delivery Acknowledgement
We have reviewed and accept the information contained within this plan and understand the
assumptions associated with it. We believe that all information provided by us is complete and
accurate to the best of our knowledge. We recognize that performance is not guaranteed and that
all future projections are included simply as a tool for decision-making and do not represent a
forecast of our financial future. This plan should be reviewed periodically to ensure that decisions
made continue to be appropriate, particularly if there are changes in family circumstances, such as
an inheritance, birth of a child, death of a family member, or material change in incomes or
expenses.



____________________________________
Anthony Klient




____________________________________
Deborah Klient


Date:   ______________________________




Please Note...
We have prepared this plan based on information provided by you. We have not attempted to verify
the accuracy or completeness of this information. As the future cannot be forecast with certainty,
actual results will vary from these projections. It is possible that these variations may be material.
The degree of uncertainty normally increases with the length of the future period covered.




August 19, 2012                                                                       Page 128 of 128

								
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