Current Lifestyle Expenditures (Basic living expense) is just under $ 55,000/year and is expected to remain the same other than increases in inflation estimated to be 2%. This figure includes the $12,000 annually for their Arizona property.

They hope their retirement assets will grow at a 5% pace, Joint assets and TFSAs at 7%. Though the real estate markets are slowing down in Canada (expected to appreciate at 4% annually) this is not the case in Arizona, especially Phoenix.... It has been growing and continues to grow at around 6% annually.

Sally also have significant unused RRSP room of $50,000 and TFSA room of around $30,000 and though retiring earlier or later than age 65 will be explored, if they were to retire at 65, they would each be eligible for the maximum CPP benefits currently in place.

Please use the appropriate Tax Tables (Ontario), CPP and OAS guides given to you in class as well as the RRIF, LIRA handouts.