Keeley and Roy are concerned about their financial future and meeting their goals. They are 38 years old with twin girls, Abigail and Laryssa age 8. Keeley is a public relations account executive earning a salary of $170,000 (MTR 48%) per year, while Roy works in the front office of a professional soccer club (football actually) earning $95,000 (MTR 38%) per year. Both incomes include bonus. They recently purchased their dream home in 2020 with a $600,000 mortgage. Their mortgage rate is a 1.65% 5-year variable rate maturing in 2025. They have been a little delayed on their long-term planning as they were focused on purchasing a home after renting for so long. Their current financial position is as follows. Keeley has $175,000 in RRSPs after utilizing $25,0000 for her home buyers plan; $25,000 in TFSA investments. She has a work sponsored Group RRSP, she matches 4% of what her company contributes, valued at $62,500. Roys assets are $105,000 in RRSPs, he also used $25,000 for the homebuyers plan, $30,000 in TFSA accounts and a defined contribution plan at work with a 3% matching benefit, valued at $65,000. He contributes 3% of his income matched by his company. Keeleys 2021 RRS room is $48,000 including carry forward room and Roys RRSP room is $58,000 including carryforward room.

Keeley and Roy have$4000per month to commit to their goals and your recommendations.

Their current goals are:

1. Educate their children
2. Invest wisely (i.e., efficiently)
3. Retire comfortably @ age 62 with 65% of their pre-tax income

Utilizing the fundamental tax planning strategies, provide Keeley and Roy6tax planning strategies with specific recommendations that will enhance their ability to reach their goals.

Please provide at least one recommendation for deferral, splitting, spreading, and sheltering. Please disregard any strategies pertaining to tax credit maximization.

(12 Marks).

Provide 4 specificexampleswithinthe impediments to wealth which you believe are most impactful to them and their goals and why? (Please consider current events and market conditions) Provide Keeley and Roy with a recommendation(not a solution)for each impediment you have identified.(8 Marks).

I am looking for insight for recommendations based on current events.

I encourage point form or bullet points. Please provide quantification of your solutions to enhance your recommendations where you believe is necessary.

No more than two pages double spaced. Quality over quantity with specifics.

Answer rating: 100% (QA)

Tax Planning Strategies 1 Deferral Keeley and Roy can maximize their RRSP contributions to defer taxes They should contribute the maximum allowed amount taking into account their RRSP contribution roo... View the full answer