Copyright © 2014 STYLUS Asset Management Inc.. How much do I need to save for my retirement?

Retirement Planning:

Creating a clear plan for the

futureCopyright © 2014 STYLUS Asset Management Inc.

How much do I need to save for my retirement?

The Million Dollar Question……

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?

Key Considerations …

1. Gather Financial Information

How Do I Start?

PERSONAL BALANCE SHEET

Step 1: Information Gathering

1. What do you own?

Assets:

• Cash / bank accounts

• Current: vehicles

• Long term: house, cottage,

investments, insurance policies.

Step 1: Information Gathering

PERSONAL BALANCE SHEET

2. What do you owe?

Current: Credit Cards / Line of Credit

Long term: Mortgage

This uncovers your NET

WORTH & the assets you

have to support your retirement

Step 1: Information Gathering

PERSONAL BALANCE SHEET

PERSONAL INCOME STATEMENT

What do you earn?

INCOME (Pre-Tax): All sources

Step 1: Information Gathering

PERSONAL INCOME STATEMENTWhat do you

spend?

Step 1: Information Gathering

• Daily: food & drink

• Weekly: personal care, dining out

• Monthly: Mortgage payments, clothing

• Annual: Taxes, travel

This determines …

• Your estimated “cost of living”

• And what’s left over to either save or spend

Step 1: Information Gathering

PERSONAL INCOME STATEMENT

1. Gather Financial Information2. Establish Overall Retirement

Objective

How Do I Start?

Long-Term Objective:

THREE SCENARIOS

Step 2: Retirement Objectives

“I want to live off ONLY what my investments earn for

me.”

CAPITAL PRESERVATION

SCENARIO #1:

Step 2: Retirement Objectives

“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

SCENARIO #2

Step 2: Retirement Objectives

“I want the cheque to bounce at the Funeral Home.”

SPEND-TO-ZERO

SCENARIO #3

Step 2: Retirement Objectives

Have you agreed on your objectives with your spouse?

Do your children know your objectives?

Do your “affiliated professionals” know your objectives?

Step 2: Retirement Objectives

Important Considerations

1. Gather Financial Information2. Establish Overall Retirement

Objective3. Identify & Prioritize Retirement

Goals

How Do I Start?

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

Step 3: Identify & Prioritize Retirement Goals

1. Gather Financial Information2. Establish Overall Retirement

Objective3. Identify & Prioritize Retirement

Goals4. Develop an Investment Program

How Do I Start?

An effective investment program helps to

achieve…1) Cash Flow

2) Diversification

3) Risk Management

4) Tax Opportunities

5) Peace of Mind

Step 4: Develop an Investment Program

You need to understand your tolerance for

Step 4: Develop an Investment Program

PERSONALITY

INVESTMENT TIME

HORIZON

Gauge your Investment “Personality”

Step 4: Develop an Investment Program

Short-term volatility

doesn’t bother youBig swings in

the stock market keep

you up at night

You can handle a steady ride

with a few bumps

Investment Time Horizons:

“The Bucket Approach”

Immediate Needs (Next 12 months)

Medium Time Horizon

(3-5 Years)

Longest Time

Horizon (5+ Years)

Shortest Time Horizon

(1-3 Years)

Step 4: Develop an Investment Program

The STYLUS Funds:To

lera

nce f

or

Vola

tility

Time Horizon

U.S. Blended Equity

Wealth Protection

Momentum

Value with Income

Growth

GIC’s

Step 4: Develop an Investment Program

1. Gather Financial Information2. Establish Overall Retirement

Objective3. Identify & Prioritize Retirement

Goals4. Develop an Investment Program5. Building “The Plan”

How Do I Start?

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

Step 5: Building “The Plan”

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024$0

$500,000

$1,000,000

$1,500,000

Base Case

OPTIONS & VARIABILITY

Step 5: Building “The Plan”

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024$0

$500,000

$1,000,000

$1,500,000 Growth-Tilt

Stability-Focused

1. Gather Financial Information2. Establish Overall Retirement

Objective3. Identify & Prioritize Retirement

Goals4. Develop an Investment Program5. Building “The Plan”6. Monitor & Adjust

How Do I Start?

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.

Step 6: Monitoring and Adjusting

Retirement Planning - SUMMARY GATH

ERESTABLISH

PRIORITIZE

DEVELOP

BUILD

MONITOR

NEXT STEP:

Set up a meeting with STYLUS to get started!