David & Debra

Case Study #2

Ages: 65 & 64 

David and Debra have been married for seven years and they each have children from a prior marriage.

David worked for the same company for 25 years and retired just a few months ago. The company offered a defined contribution pension plan and paid him a bonus when he retired.

Debra worked for a number of different companies over the years and retired at the same time as David. She has accumulated funds inside of an RRSP and a TFSA.

The Challenge

David and Debra want help managing their investments. They don’t have the interest to do it themselves.

They want to make sure that their income is tax-efficient and won’t run out.

The pension and savings accounts hold widely different amounts and investments. They want to coordinate their income levels.

It’s important to care for the survivor, while not disadvantaging their adult children.

The Approach

David and Debra chose to work with a financial advisor who helped them to choose high quality investments that suited their investing personalities. They used strategies that allow them to minimize their tax obligation. They decided to invest in products that provide a guaranteed lifetime income with survivorship. The remaining investments lean toward growth to keep up with inflation and provide flexibility. Beneficiary designations work in favour of the surviving spouse and the separate children.

The Results

David and Debra choose products that include protection against market downturns and that guarantee lifetime income. They know that their own children will receive their inheritance after the surviving spouse is taken care of. They feel confident that they’ll each be secure and that their children will be treated fairly. Their advisor checks in with them regularly, especially when the markets are uncertain.

This case study is hypothetical and for illustration purposes only.

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