Client Meeting Notes — Sabrina Doyle Financial Plan Analysis

Client Identity: Sabrina Doyle (Age $32$ ) planning retirement at age $60$ .
Overall Funding Status: $88\%$ funded, representing a meaningful gap where approximately $12\%$ of late-life retirement spending is uncovered.
Asset Depletion: Current projections show financial assets (RRSP/RRIF, LIF, and TFSA) being exhausted by age $84-85$ .
Income Post-Depletion: Post-age $85$ reliance shifts primarily to CPP, OAS, and real estate, with nominal income around $80,000-90,000$ /yr vs. expenses exceeding $200,000$ /yr.
Net Worth Trajectory: Expected to peak at approximately $3,860,000$ around age $65-70$ .

Current Shortfall: The plan requires $1,579,940$ in coverage, but Sabrina currently holds only $1,000,000$ , leaving a gap of $579,940$ .
Primary Drivers for Coverage: - Income Replacement: $1,025,133$ (to support children Deacon, age $6$ , Kye, age $4$ , and Kallie, age $1$ ). - Debt Repayment: $398,813$ for the mortgage and investment loans. - Estate Taxes/Final Expenses: Approximately $156,000$ .
Policy Concern: The Empire Life Term 20 policy incorrectly lists a $0$ death benefit in the tables; status needs immediate confirmation.
Recommendation: Secure a new Term 20 or Term 25 policy for approximately $600,000$ .

Debts: Sabrina carries three loans at a $4.45\%$ interest rate: - Mortgage: $323,000$ . - RRSP Loan: $38,900$ . - TFSA Loan: $36,400$ .
Active Protections: Sun Life Critical Illness policy with $100,000$ coverage at a premium of $1,193$ /yr.
Education Savings: RESP is well-funded, projected to reach $194,000$ by the time Sabrina is age $44$ .
Non-Registered Assets: The OPEN account ( $637,000$ ) is currently the largest asset but is being drawn down rapidly pre-retirement.

Option 1 (Retirement Age): Delay retirement from age $60$ to $63$ to allow for additional growth and reduced drawdown.
Option 2 (Spending Tweak): Reduce annual retirement spending from $70,000$ to $67,107$ (a difference of $2,893$ /year or approximately $240$ /month).
Option 3 (CPP Delay): Move CPP commencement from age $60$ to $65$ or $70$ to maximize permanent benefit increases.
Structural Note: The software suggests that "saving more" is not a viable solution because contribution limits are already maximized.

Projected Estate Value: Nearly $3,000,000$ nominal (approx. $860,000$ in today’s dollars) at age $95$ .
Liquidity Issue: The estate is projected to consist of $4,000,000$ (nominal) in real estate but $0$ in liquid financial assets and $1,050,000$ in remaining debt.
Taxation: Projected estate tax is $0$ , facilitating clean asset transfer to beneficiaries, though the lack of liquidity remains a central vulnerability.

Policy Verification: Why does the Empire Life Term 20 policy show a $0$ death benefit? Is it active?
Insurance Willingness: Is she open to increasing life insurance by $579,940$ to protect her three children?
Modeling Flexibility: Has she considered modeling CPP at age $65$ instead of $60$ ?
Career Flexibility: Is working until age $61-62$ or part-time in early retirement acceptable options?
Real Estate Strategy: What is the long-term plan for the home? Is downsizing or a reverse mortgage a possibility for future income?
Omissions: Are there any large unplanned expenses like renovations, vehicles, or travel not currently in the plan?