1. Dany will turn 60 years of age in December and plans to retire then from Bingo Ltd after 20 years of service. He is a member of a defined benefit RPP and will receive a pension based on 2% of his final average earnings of $80,000 times years of service. Dany wants the 60% survivor pension option which will result in a 25% reduction in his RPP benefit. He qualifies for a monthly CPP benefit of $630 which he will start to receive at age 60. With retirement, Dany estimates that his annual cash flow needs will be $30,000. Based on this information, and using a 15% effective tax rate, what will be Dany's net cash flow position next year?

Answer rating: 100% (QA)

Given the information provided Danys net cash flow position next year will be neg... View the full answer