In Ontario, a couple we’ll call Sid, 48, and Heather, 46, are raising two teens. One, 13, is physically disabled. Sid is a civil servant with a defined-benefit pension. Heather is a technical advisor for a financial firm. They have gross incomes consisting of Sid’s $91,138 base pay and Heather’s $120,000 salary and bring home $60,000 and $72,000 per year, respectively.
The sum of their house, RRSPs, TFSAs, non-registered assets, RESPs and accounts for their children add up to $2,447,000 including $977,000 in several term and permanent life insurance policies. They have no debts.
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Despite their solid financial position, they feel caught in a bind. Heather would like to quit her job to care for her disabled daughter, but that would slash their take-home income by about half. Can they devise a…