Financial Statements:
Professional formatting that is not too small or blurry to read. Numbers must be rounded to the nearest dollar
with no cents. All numbers are right aligned in one single column. Each statement cannot be split across multiple
pages. Double check all your additions and subtractions!
CASH FLOW STATEMENT
• Complete one future monthly (not annual) cash flow statement based on projected income and
expenses after you start working in your career
BALANCE SHEET
• This is a current snapshot of what you own and owe, NOT a projection!
Budget Reflection:
• Reflect on your projected net cash flow and determine if it is sufficient to meet your stated financial goals
• Strategies to reduce expenses
• Is there enough emergency cash?
Credit Planning:
• How you plan to pay off current or projected debts in the future like mortgage
• Ways you can increase your credit score
Investment Planning:
• State your investor risk profile
• How to allocate your funds across different asset classes and types of investments (diversification)
• Your assumption for average annual investment return
Tax Planning:
• Consider your marginal tax bracket based on your projected future income
• Strategies to reduce taxes (e.g. deductions, tax credits, and registered plans etc.)
Insurance Planning:
• Talk about your risk management strategies in property, health, life and disability insurance
• Any existing coverage? Is it enough?
• Reasonable rationale for not needing a particular insurance coverage
Retirement Planning:
• Restate your retirement goal that includes assumptions about your age of retirement, investment rate of
return, required annual retirement income (need to consider inflation), and life expectancy (not shorter
than 85 years)
• Calculate your total annual OAS, CPP, and RRSP income during retirement and determine if you are on
track to reach the goal (show detailed calculations)
• What can you do if you are not on track for the goal?
Estate Planning:
• What you need to complete (e.g. will, POA, living will etc.)
• Strategies to minimize probate fees and make sure you pass on assets efficiently
Deliverables
• Your report should include charts, graphs, and other illustrations (in addition to financial statements) to
enhance your plans. They should be relevant to illustrate the plan
• Professional layout and headings are important to make your plan clear
• Consistency throughout the plan is very important. For example, disposable income of $5,000 per month
cannot fund various strategies that require $10,000 monthly cash flow
• Plan should be written in paragraph form instead of point form
• MAXIMUM six written pages (illustrations, financial statements, and appendices can be in addition)
• Submit your report in one Word or PDF document on Blackboard by due date and time (watch video
tutorial to find the place of submission)
