Unit 1- Intro to retriement planning

Question 1

1920-1940

Answer 1

Number of babies born per eyar in Canada declines til end of WW2

Question 2

1947-1964

Answer 2

baby boom

Question 3

year 2000

Answer 3

births at lowest rate

Question 4

Age pyramid/population pyramid

Answer 4

• 2 conventional bar graphs
• 1 graphy shows % population of males of different age group
• 1 for females showing same thing
• shows distributin of cdn population at point in time

Question 5

life expectancy

Answer 5

avg number of eyars of life remaining for person of specific age assuming current mortality rates prevail

Question 6

OAS

Answer 6

funded by general tax revenues

Question 7

CPP

Answer 7

funded by contributuons of current labour force

Question 8

2017-2016

Answer 8

baby boomers will have significant impact on social retirement programs

Question 9

by 2031

Answer 9

• baby boomers peak retirement
• 24% of population
• only 2.6 workers to make CPP contributions (not enough)
• will put big strain on government social programs

Question 10

Phases of retirement

Answer 10

5 phases:

1. beginning the planning process
2. Implementing the plan and building retirement fund
3. monitor progress
4. approaching retirement
5. retiremnet and distributions of assets

Question 11

6 step planning process

Answer 11

step 1- establish client/planner engagement
step 2- establishing objectives and gather data
step 3- clarify present status and identify problemareas and opportunities
step 4- Identify appropriate strategies and present plan
step 5- Implement plan
step 6- Monitor and update

Question 12

step 1- establish client/planner engagement

Answer 12

• to ensure client/planner aware of what to expect from each other and their responsibilities
• planners- state exactly what financial process includes and benefits to client, services able and willing to provide
• draft client/planner engagement

Question 13

Step 2- Establish objectives and gather data

Answer 13

clients s/b specific with retirement objectives

Question 14

Step 3- Clarify present status and identify problem areas and opportunities

Answer 14

• fully understand client current financial position + future income potential
• be aware of any other financial obligations/objectives that may interfere

Question 15

Step 4- Identify appropriate strategies + present plan

Answer 15

-project income needed at retirement + determine savings client needs to accumulate to fund income

• Need for retirement affected by:
  1. estimated financial needs in retirement
  2. anticipated income from employer plan, CPP, OAS, P/T work
  3. Current value of retirement plan assets, etc..

-= once req funding determined, develop strategies to accumulate funds

Question 16

Step 5- Implement Plan

Answer 16

Implement plan???

Question 17

Step 6- Monitor and Update

Answer 17

• monitor periodically
• modify strategies to reach goals
• ongoing review