Suzie (age 30) always wanted to be a mom. She is a professional earning a good income and has not found a life partner. She wonders if the dream of being a mother can come true. She owns a home worth $400,000 and has a $285,000 mortgage with no other debts. Suzie has $80,000 in her RRSP and an additional $25,000 in non-registered investments. Suzie has also just learned that shortly, she is inheriting $125,000 from her Grandmother who passed away a few months ago. Suzie has been investigating either pregnancy via a donor or adoption.
Len gathered information from Suzie and provided some recommendations. They included:
- Suzie should move the maximum available from her non-registered account into a Tax Free Savings Account (TFSA).
- Suzie supplement her group/association disability coverage with a private policy in addition to reviewing her critical illness and life insurance protection.
- Suzie completed a budget reflecting any changes of income anticipated should she either have a child or adopt a child in addition to the anticipated changes in expenses that would ensue.
- Len proposed a tax efficient and yet conservative solution to investing the anticipated inheritance allowing the flexibility of drawing on the income and capital to supplement her income and meet expenses if necessary.
The end result was that it financially possible for Suzie to plan on being a mom. She is excited to be now taking the next steps.