Retirement Planning: Creating a clear plan for the future 2014 Information Session Retirement Planning: Creating a clear plan for the future Copyright © 2014 STYLUS Asset Management Inc.

The Million Dollar Question…… How much do I need to save for my retirement?

Key Considerations … When are you going to be “ready” to retire? What are you going to do after you retire? How do you want to spend your savings? What is your life expectancy? Are you prepared for the unexpected? Do you have plans to leave a legacy?

How Do I Start? Gather Financial Information

PERSONAL BALANCE SHEET Step 1: Information Gathering PERSONAL BALANCE SHEET 1. What do you own? Assets: Cash / bank accounts Current: vehicles Long term: house, cottage, investments, insurance policies.

PERSONAL BALANCE SHEET Step 1: Information Gathering PERSONAL BALANCE SHEET 2. What do you owe? Current: Credit Cards / Line of Credit Long term: Mortgage

Step 1: Information Gathering PERSONAL BALANCE SHEET This uncovers your NET WORTH & the assets you have to support your retirement

PERSONAL INCOME STATEMENT Step 1: Information Gathering PERSONAL INCOME STATEMENT What do you earn? INCOME (Pre-Tax): All sources

Step 1: Information Gathering PERSONAL INCOME STATEMENT What do you spend? Daily: food & drink Weekly: personal care, dining out Monthly: Mortgage payments, clothing Annual: Taxes, travel

Step 1: Information Gathering PERSONAL INCOME STATEMENT This determines … Your estimated “cost of living” And what’s left over to either save or spend

How Do I Start? Gather Financial Information Establish Overall Retirement Objective

Step 2: Retirement Objectives Long-Term Objective: THREE SCENARIOS

Step 2: Retirement Objectives SCENARIO #1: “I want to live off ONLY what my investments earn for me.” CAPITAL PRESERVATION

Step 2: Retirement Objectives SCENARIO #2 “I want to maintain a very nice lifestyle in retirement, but I want to make sure I don’t use it all up.” HYBRID MODEL

Step 2: Retirement Objectives SCENARIO #3 “I want the cheque to bounce at the Funeral Home.” SPEND-TO-ZERO

Step 2: Retirement Objectives Important Considerations Finances Have you agreed on your objectives with your spouse? Do your children know your objectives? Do your “affiliated professionals” know your objectives?

How Do I Start? Gather Financial Information Establish Overall Retirement Objective Identify & Prioritize Retirement Goals

Step 3: Identify & Prioritize Retirement Goals Ongoing Needs Funds to achieve desired lifestyle Short-Term Travel Capital purchases (car, renovations, etc.) Child’s wedding Medium-Term Education savings for child or grandchild Purchasing real estate (cottage, out of country) Long-Term Generational Wealth Transfer Philanthropic

How Do I Start? Gather Financial Information Establish Overall Retirement Objective Identify & Prioritize Retirement Goals Develop an Investment Program

An effective investment program helps to achieve… Step 4: Develop an Investment Program An effective investment program helps to achieve… Cash Flow Diversification Risk Management Tax Opportunities Peace of Mind

You need to understand your tolerance for Step 4: Develop an Investment Program You need to understand your tolerance for PERSONALITY INVESTMENT TIME HORIZON

Step 4: Develop an Investment Program Gauge your Investment “Personality” Short-term volatility doesn’t bother you Big swings in the stock market keep you up at night You can handle a steady ride with a few bumps

Step 4: Develop an Investment Program Investment Time Horizons: “The Bucket Approach” Longest Time Horizon (5+ Years) Medium Time Horizon (3-5 Years) Shortest Time Horizon (1-3 Years) Immediate Needs (Next 12 months)

Step 4: Develop an Investment Program The STYLUS Funds: U.S. Blended Equity Tolerance for Volatility Time Horizon Momentum Growth Value with Income Wealth Protection GIC’s

How Do I Start? Gather Financial Information Establish Overall Retirement Objective Identify & Prioritize Retirement Goals Develop an Investment Program Building “The Plan”

Step 5: Building “The Plan” Once the important information has been collected, STYLUS can start building your personalized financial & investment plan: (a) INPUTS

Step 5: Building “The Plan” (b) CASH FLOW PROJECTION

Step 5: Building “The Plan” 10 YEAR CASH FLOW PROJECTION Base Case

Step 5: Building “The Plan” OPTIONS & VARIABILITY Growth-Tilt Stability-Focused

How Do I Start? Gather Financial Information Establish Overall Retirement Objective Identify & Prioritize Retirement Goals Develop an Investment Program Building “The Plan” Monitor & Adjust

Step 6: Monitoring and Adjusting A Financial Plan must be monitored. Your needs might change & the markets are always changing. STYLUS will help monitor your account to ensure that your plan remains on target.

Retirement Planning - SUMMARY GATHER ESTABLISH PRIORITIZE DEVELOP BUILD MONITOR

Set up a meeting with STYLUS to get started! NEXT STEP: Set up a meeting with STYLUS to get started!