Alberta · Individual planning

Financial plan

Your privacy: There’s no database behind this form. It asks only for your name, current life insurance, and basic figures like your TFSA balance and room. Your answers go to me, your advisor, and live in a private link that reopens your completed form. Only you, me, anyone you share that link with, and anyone looking over your shoulder can see them.

Person 1 life insurance gap

$0

Monthly contributions

$0

Financial plan

One step at a time. Each step asks for a few facts and shows what they change. Entries stay in this tab only and are not saved in the browser. They are emailed to me only if you submit the client intake. This page does not choose a policy or an investment.

Step 1 of 12·Scope

    AWhat belongs in this plan?

    Show the insurance need, the retirement path, or both. A Life and A&S licence covers the insurance side. The retirement figures show the income gap and where additional savings can sit — they are not a securities recommendation.

    What belongs in this plan?

    BPlan

    Who the plan is for, and who prepared it. The plan date is printed on the plan and used in its file name.

    CHousehold

    Under the Income Tax Act, that person must be the survivor spouse (legally married) or common-law partner: living in a conjugal relationship for at least 12 continuous months, or the parents of a child together by birth or adoption, or with custody and control of a wholly dependent child. For a TFSA, they must be named successor holder in the contract or will where provincial law allows the designation. For an RRSP or RRIF, they must be the designated beneficiary (or RRIF successor annuitant) so the amount can transfer to their own registered plan on a tax-deferred basis. Checking this assumes those designations are in place. It is not a tax opinion.

    Person 1

    Household income

    $0

    Personal income plus the spouse's income. This is calculated. It is not a separate entry.

    DIf Person 1 dies

    The mortgage and the children are shared. Income to replace is calculated for this person from the years below.

    Each insurance chart runs to that person's likely age at death. It starts from the Canadian average life expectancy.

    Years of income the death benefit should replace. The slider starts at 10 years.

    Life insurance gap over time

    Each chart runs from today to the likely age at death. The solid line is the life insurance gap. Income replacement stays at the years chosen until retirement is that close, then it steps down, and those dollars rise with inflation. The gold dashed line is the mortgage, paid down with level payments at a 5% rate, so it falls slowly at first. The olive dashed line is education for each child still under the independence age; it steps off when that child reaches the age. The dotted line is tax at death on the balances that remain in that year of the retirement plan — the same figure as Table F3. Final expenses and probate rise with inflation and stay in the solid line. Amounts are on the left. Age is along the bottom.

    Important. Term life insurance can only run to age 85. After that, any term coverage you did not convert to whole life expires with no value. That can leave a life insurance need beyond age 85 that this chart does not illustrate.

    Fig. D1

    Person 1

    EDisability and critical illness

    Enter any disability or critical illness already in force first. The figures below are the gaps after that coverage. Disability is a monthly benefit. Critical illness is one lump sum for the months of earned income needed to recover. This replaces earned income only. Income from investments is not included. These are amounts. This worksheet does not choose a product.

    Person 1

    Disability gap, monthly

    $0

    Critical illness gap

    $0

    Capped at 70% of earned income. That is the usual ceiling for individual disability coverage.

    FRetirement

    The table runs from this year to the later of the two likely ages at death. Contributions stop at retirement. CPP and OAS cover part of the after-tax income, and the accounts withdraw the rest.

    Retirement income

    Person 1

    Starts at 70% of combined income. Slide it, or type an amount.

    Fig. F1

    Buying power if this income never rises

    Accounts today

    Person 1 accounts

    Growth and contributions

    Choosing a profile sets both rates of return below. Moving the return-while-saving rate updates the profile to match.

    Starts at 0%. Use this when other assets include real estate. It applies before and after retirement.

    At retirement, contributions stop. CPP and OAS cover part of the income. The TFSA, RRSP, and non-registered accounts withdraw the rest and switch to this rate.

    The most you would contribute. Deposits stay at this amount until the room is used, then they follow the room that is still available.

    The most you would contribute. Combined room for both people is the limit.

    Fig. F2

    Balances from this year to the end of the plan

    Table F3

    GTax and probate on death

    Canada has no inheritance tax. Probate is a court fee on what actually goes through the estate. A non-registered account, and other assets that move through the estate, can be taxed as a capital gain on death. An RRSP is income on the final return unless it rolls to an eligible beneficiary. Those taxes are added to the life insurance gap, and the chart raises them as the accounts and the estate value grow. This is a screen, not a tax opinion.

    HAssumptions you can change for this case

    These are planning choices for this case. Inflation is the slider in the retirement section. The life insurance gap stays in today's dollars, so that slider does not shrink the insurance number.

    In retirement, CPP and OAS (when they apply) cover part of the after-tax income goal. Any shortfall is taken from Other assets, non-registered accounts, and the RRSP in proportion to those three balances, so they run down together and reach $0 at the same time. Example: if those accounts total $1,000,000 — $500,000 Other, $300,000 non-registered, and $200,000 RRSP — a $100,000 shortfall draws about $50,000, $30,000, and $20,000 from each. The TFSA is not used until Other, non-registered, and the RRSP are gone.

    The plan is ready

    Print it for the file, or go back to any step to adjust. The printed plan carries the summary, every entry, each chart and table, and the note behind each one.

    How this information is handled

    If you opened this page from a plan link, your details are in that web address. Anyone with the link can open the same entries. Printing the plan gives you a copy to keep. These entries are emailed to me, Ethan Marchand at Advisor Strategies, only when you submit the client intake. This website does not keep an account for you, and closing the tab leaves nothing saved in the browser.

    This is an illustration for a conversation. It does not choose a policy, and it is not a tax opinion. Disability is shown as a monthly benefit. Critical illness is shown as a lump sum. A Life and A&S licence does not by itself authorize a securities or mutual fund recommendation.

    The entries are not written to this browser. They exist in this tab, and in the web address if you opened a plan link. Nothing is submitted from this page.

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