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In small town in Ontario, a woman we’ll call Judy, 43, lives with her daughter, Suzy, age seven. A widow, Judy has a monthly income of $11,651 composed of a civil service salary, $1,320 from her late husband’s pension and Canada Pension Plan survivor benefit, $247 from the Canada Child Benefit and $1,500 in rental income. After tax, it works out to $7,485 per month and covers $6,918 in expenses, including the $2,190 monthly mortgage cost on her rental unit.
Judy’s issue is to determine if she can retire at age 57 with a civil service pension and have $75,000 per year after tax in 2021 dollars. She wants to build Suzy’s $21,274 RESP to a level at which it can provide income for her first and perhaps second degrees. She is also interested in building a $90,000 addition to her house.
Montreal
Quebec
Canada
Kelowna
British-columbia
Derek-moran
Andrew-allentuck
Financial-planning-ltd
National-post-photo
Canada-pension-plan
Canada-child-benefit
Smarter-financial-planning