Raising children and building for the future
How TD Helped
Deborah works full-time as an x-ray technician - in the same hospital where she met Gregory, who works as a cardiac sonographer.
They owned a small bungalow but recently upgraded to a much larger four-bedroom home.
Their total household income is approaching $175,000 annually, but a substantial amount of it goes to their mortgage payments. They have just inherited $110,000 from Gregory's grandmother, and while they want to invest for the future, they are also eager to be debt-free.
They have great educations and careers, but have little investment knowledge. Their advisor took the time to understand where they were in their life and what they wanted to achieve. She helped them clarify their goals, establish priorities and showed them the path that can take them to where they want to be, financially, in their future.
Expand Education planning
We had no idea that we could get up to $7,200 from the Canadian government for each child's education, just by contributing to an RESP. Our advisor recommended a family RESP for maximum flexibility. If one of our children decided not to go to school, we could use the savings for the other one.
She did a cash flow analysis, to find out just how much we could be putting aside, and then set up regular contributions so we wouldn't have to worry about transferring money every month. She also showed us just how much our savings could grow to over time.
We were amazed at the results. With the Canada Education Savings Grant from the government plus tax-deferred compounding, we were looking at almost $100,000 by the time Catherine would be graduating high school.
Our advisor also strongly recommended that we speak to our lawyer about updating our wills and creating powers of attorney and to an insurance specialist to help make sure our children would be protected in case something should happen to us. She helped us see just how serious the implications could be if these things weren't kept up-to-date.
Expand Financial planning
When we told our advisor that we were thinking of moving, she referred back to our plan and updated it, based on what we were earning now and what a bigger home was likely to cost us.
We saw that we might have to juggle some priorities, like pulling back on the vacation plan a bit, but it would be worth it for our bigger dream home. We were thrilled!
Expand Honouring a gift
My grandmother left us $110,000 - more money than we knew what to do with. Our advisor revisited our plan and together we decided to pay off our line of credit and make a principal payment towards our mortgage. We wanted to invest the rest, but weren't sure how to get started.
Our advisor recommended using our Tax-Free Savings Accounts, contributing right up to the maximum. We'd be able to hold a range of investments, and everything we earned would be tax-free. We could also get the money out, tax-free, if we needed it in an emergency.
Expand Retirement planning
We didn’t even know where to start, but our advisor put our minds at ease and helped us figure it out.
We both have pension plans through work, so we weren't sure how much we could contribute to RSPs. She told us we'd find the limits on our Notices of Assessment from last year. We showed her our pension statements from work, too. With this information, she was able to map out a savings plan and help us choose an investment mix to help us reach our retirement goal.
* Not real customers. Composite created for illustration only.
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TD Wealth has helped many clients like Deborah and Gregory create a plan for saving and investing based on their unique goals. To find out how we can help you reach your goals, speak with an advisor today.
Call 1-800-577-9594 or find an advisor in your area.