RECOMMENDATIONS/ACTION PLAN

1. My primary concern is with your estate plans. It is extremely important that

Wills, Powers of Attorney, Guardians etc. be completed and named as soon
as possible. I am suggesting that this be done before anything else.

2. In conjunction with estate planning, insurance plays a huge part in protecting

your family. Based on the Insurance Needs Analysis that was completed
(see attached), I am suggesting that both individual life and critical illness
insurance policies be set-up for both of you. Coverage and monthly
premiums (approx.) should be as follows:

Tom
Life: $700,000
Monthly Premium: $47.00
Critical Illness: $50,000
Monthly Premium: $45.00
Michele
Life: $400,000
Monthly Premium: $25.00
Critical Illness: $50,000
Monthly Premium: $37.00

3. With regards to your registered investments held with us, I am suggesting that
we make changes to each of your portfolios to more accurately reflect your
risk tolerance and time horizon (see Symphony Proposal). I feel that the
current value of your investments combined with your monthly contributions,
at a conservative (8%) rate of return will provide you with the income needed
in retirement (see Comprehensive Retirement Concept). I am suggesting
maintaining a 70%/30% split between equities and fixed income investments
for the time being.

4. It is important to cover all key areas of financial planning. You have done an
excellent job to this point of reducing debt and building registered assets.
With that said, a non-registered pool of investments has yet to be created.
Non-registered investments play a key part in a successful financial plan in
that they help to reduce unnecessary taxes, create a tax deduction and create
a pool of assets (usually tax preferred) that can be used for lump sum
purchases (i.e. cottage, car, vacation, renovations etc.). My suggestion is to
borrow $50,000 to be invested in a non-registered mutual fund portfolio (see
Investment Loan Calculator). The resulting tax refund each year (from
interest deduction) could then be used to pay the insurance premiums I have
quoted above.

5. Set-up meeting schedule that is comfortable for you to review and

update your financial plan (minimum of once per year).
1. Roll over investment portfolio’s to Investors Group Financial Services. Over time, set up portfolios
that more accurately reflect your risk tolerance and introduce asset class and geographic
diversification.
2. Continue to maximize RRSP’s annually.
3. Set up Spousal RRSP in Ken’s name to create a more equal pool of assets for retirement.
4. Start adding $4000 per year for Christian and Oliver to RESP’s.
5. Start saving up to $1800 per month to ensure you will not outlive your money
6. Consider the use of the borrowing to invest concept to build up a pool of non-registered assets.
7. Start an Insured Retirement Program (Universal Life) to create a tax-free source of retirement income.
8. Yolanda is eligible for $15,800 per month of Disability Insurance (based on $600,000 income) but has
only $10,800.
9. Review Life Insurance policies as you seem underinsured based on discussion from last meeting.
10. Consider a decreasing balance Critical Illness policy.
11. Start funding a succession plan right now to ensure Yolanda receives full value for her business upon
retirement or premature death (i.e. Buy-Sell arrangement with another Doctor).
12. Prepare a Will and Powers of Attorney immediately. This will ensure Christian and Oliver are taken
care of as you would like.