FOMULAS

Question 1

RRSP contribution room formula

Answer 1

Step 1: contribution limit current yr :
prev yr income X 18%

Step 2: deduct pension adjustment if any from prev yr (group RRSP/pension)

Step 3: unused room + current year contribution limit

Step 3.5: add lifetime over contribution amount $2000
This is to MAX OUT

Question 2

Time vale of money: future value formula

Answer 2

FV: PV X (1 + interest rate)n? Or t

Calculator: $ + % +% +% (till the amount of n)

Question 3

75 factor

Answer 3

Currenr age + _______ = factor
OR
Factor - current age = _______
Etc

Question 4

Risk capacity vs risk tolerance

Answer 4

Risk capacity = financial=overcome fin loss

Risk tolerane = emotion= withstand emotion of loss

Question 5

Cpp entitlement (2 formulas)

Answer 5

CPP % increase formula:
(%0.70 inc ) X # months of delay= ?? MAX 8.4%/yr, 42% over 5 yrs

CPP benefit $ entitlement increase:
(Monthly entitlement @65) X (100% + % Inc calculated above)