In a corner of the Greater Toronto Area, a couple we’ll call Terry and Mary, both 42, are raising two children, ages 13 and 14. The couple has gross income of $263,200 per year. Terry brings home $13,667 per month after tax from his job in technology while Mary, a homemaker, reinvests $1,620 per month generated by her private real estate loans. Her present returns are not included in household income. They have a $1.4-million house with no mortgage, $603,000 in RRSPs, $223,000 in TFSAs, $496,000 in non-registered investments, $55,000 in cash, and $99,000 in RESPs. A small car with an estimated value of $13,000 pushes their net worth less a $200,000 home equity loan to $2,689,000. Terry and Mary would like to retire in ten years in 2032, when both are 52.
Family Finance asked Derek Moran, head of Smarter Financial Planning Ltd. in Kelowna, B.C., to work with…
