Mark and Sarah Spense

Question 1

What Are Ways to Increase Cash Flow

Answer 1

1. Reduce retirement lifestyle expenses
2. Reduce retirement income expectations, postpone retirement, assume more investment risk if it fits KYC
3. Seek other employment, like part-time
4. Saving in higher interest products

Question 2

What Are Advantages and Disadvantages of RRSP

Answer 2

Advantages:

• Tax savings vehicle, immediately reduce tax owning
• RRSP contributions can be used by spousal plans which can be used by the lower tax spouse

Disadvantages

• If you have reduced income there might be reduced benefits
• Witholding taxes on any potential emergency withdrawals

Question 3

What Are Risk Management Issues

Answer 3

1. Life Insurance Cost
   - Buying life insurance at higher premiums
   - Determining if insurable
2. Disability Insurance
   - Short term and long term disability
   - cannot purchase disability insurance if not working
3. Extended Health Care
   - cover out of pocket expenses for medical and dental
   - serious illness leads to higher costs
4. Capital Needs
   - if someone is the sole income earner, the dependents require the income to live