So basically Jose and Alicia would like to retire in 15 years and they think they will need an income of $150,000, so I need help as I'm stuck on how to do the calculations and don't understand what is needed to be Calculated?

Their DBP is (9 x 1780) - 600 = $15,420 and their combined income is $324,000. This is for my retirement and estate planning class in Ontario.

 

  

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Income: Monthly Salaries Less Deductions: Total Monthly Income Fixed Expenses Mortgage House Insurance Combined Income Tax CPP ΕΙ Car Insurance Car Payments Utility Bills Phone Bills Internet & Streaming Servies Life Insurance Golf Club Memberships Bank fees RRSP contributions TFSA contributions Total Fixed Expenses Cash Flow Statement Jose 19,583.33 6,000.00 263.83 74.08 13,245.41 300.00 875.00 100.00 200.00 400.00 2,500.00 4,375.00 Alicia 7,416.66 1,599.00 263.83 74.08 5,479.74 100.00 150.00 75.00 400.00 200.00 925.00 Joint 3,776.54 200.00 400.00 110.00 150.00 35.00 4,671.54 Total 26,999.99 7,599.00 527.67 148.17 18,725.16 3,776.54 200.00 400.00 875.00 400.00 360.00 150.00 275.00 800.00 35.00 2,500.00 200.00 9,971.54 Alicia (age 46) has been a teacher for the last 21 years, Jose (age 48) is a business executice. Alicia earns $89,000 per year and Roman earns $235,000. Jose does not have a pension plan, but Alicia has a DBP. They would like to retire in 15 years and they think they will need an income of $150,000. They have two daughters, age 9 and 11. Alicia and Jose would like to save $50,000 for each child's education. Alicia and Jose are not great at managing their finances, but realize that they should pay off their debt before retirement. Alicia's car is fully paid for. Jose is leasing a luxury car. The current mortgage is at 4% with 20 years remaining on the amortization. Goals: Kids education Retirement in 15 years House paid Debt paid Income: Monthly Salaries Less Deductions: Total Monthly Income Fixed Expenses Mortgage House Insurance Combined Income Tax CPP ΕΙ Car Insurance Car Payments Utility Bills Phone Bills Internet & Streaming Servies Life Insurance Golf Club Memberships Bank fees RRSP contributions TFSA contributions Total Fixed Expenses Cash Flow Statement Jose 19,583.33 6,000.00 263.83 74.08 13,245.41 300.00 875.00 100.00 200.00 400.00 2,500.00 4,375.00 Alicia 7,416.66 1,599.00 263.83 74.08 5,479.74 100.00 150.00 75.00 400.00 200.00 925.00 Joint 3,776.54 200.00 400.00 110.00 150.00 35.00 4,671.54 Total 26,999.99 7,599.00 527.67 148.17 18,725.16 3,776.54 200.00 400.00 875.00 400.00 360.00 150.00 275.00 800.00 35.00 2,500.00 200.00 9,971.54 Alicia (age 46) has been a teacher for the last 21 years, Jose (age 48) is a business executice. Alicia earns $89,000 per year and Roman earns $235,000. Jose does not have a pension plan, but Alicia has a DBP. They would like to retire in 15 years and they think they will need an income of $150,000. They have two daughters, age 9 and 11. Alicia and Jose would like to save $50,000 for each child's education. Alicia and Jose are not great at managing their finances, but realize that they should pay off their debt before retirement. Alicia's car is fully paid for. Jose is leasing a luxury car. The current mortgage is at 4% with 20 years remaining on the amortization. Goals: Kids education Retirement in 15 years House paid Debt paid

Answer rating: 100% (QA)

To calculate the retirement income that Jose and Alicia will need you can follow these steps 1 Deter... View the full answer