Financial Advisor: Good afternoon, Japjyot and Suman. It's great to see you both again.

How
have you been since our last meeting?

Japjyot: Hello, Nidhi. We're doing well, thank you.

Suman: Great, thank you, Nidhi.
Financial Advisor: Today, we'll focus on creating a comprehensive financial plan, with a
special emphasis on your son's education savings.
Japjyot: We're eager to learn more about how we can secure our son's future.

Financial Advisor: I'm glad to hear that. Has anything changed in your financial aspects from
our last discussion?
Suman: No, there are not any major changes in our financial situations and goals.
Financial Advisor: Let's start with a quick overview of your current financial situation. You
both have stable careers in IT, with a combined annual income of $150,000 to $180,000.
You've also made a significant investment in your home. Is that correct?

Japjyot: Yes, that's correct. We're comfortable with our current financial situation but want to
ensure we're planning wisely for the future.

Financial Advisor: Excellent. Now, let's dive into your son's education savings plan. I
recommend setting up a Registered Education Savings Plan (RESP) to take advantage of
government grants and tax-deferred growth. Based on your financial goals, I suggest
contributing about $2500 per year to the RESP. This will help you build a substantial
education fund for your son. How does that sound?

Suman: That sounds like a solid plan. We want to ensure we have enough saved for our son's
education.
Japjyot: Wll Nidhi, Is the money contributed to RESP tax deductible?

Financial Advisor: Good question Japjyot! While contributions to a RESP do not provide a
tax deduction, the investment income earned is not taxed until it's withdrawn. At that point,
it's taxed in the hands of the student, who will likely have a lower tax rate. Additionally, the
Canada Education Savings Grant (CESG) offers a 20% match on the first $2,500 contributed
annually, up to a lifetime maximum of $7,200 per child. This is a great way to boost your
savings.
Japjyot: That's very helpful. We'll definitely start contributing to an RESP.

Financial Advisor: Moving on to retirement planning, it's crucial to utilize both RRSPs and
TFSAs effectively. From our last meeting I got to know about your TFSA contribution so
now I would like to focus on RRSP. Given your income level, contributing to an RRSP will
provide you with tax deductions and help grow your retirement fund.

Suman: We've been contributing to our TFSAs, but we haven't focused much on RRSPs yet.

Financial Advisor: It's a good time to start considering RRSP contributions, especially since
they can reduce your taxable income and grow your retirement savings. I have reviewed your
pension statement and based on that you can contribute around $10000 annually after
adjusting your pension adjustment.

Japjyot: That sounds like a plan. We now want to ensure we're well-prepared for our
investment.
Financial Advisor: From your financial profile, I understand that you have $80,000 in your
TFSA and $70,000 in a general savings account, and you're looking for investment options
with a medium risk tolerance. Based on this, I have a few recommendations to discuss.
Suman: Please go ahead Nidhi
For the $80,000 in your TFSA, I suggest allocating 60% to a diversified portfolio of
exchange-traded funds (ETFs) that include a mix of equities and bonds. This would amount
to $48,000. The remaining 40%, or $32,000, could be invested in a balanced mutual fund that
provides a mix of growth and income.

Suman: How do we ensure that the ETFs we choose are the right fit for our risk tolerance?

Financial Advisor: Great question, Suman. We'll select ETFs that have a track record of
stability and are diversified across different sectors and regions. This will help manage the
risk while still offering potential for growth.

Japjyot: And what about the balanced mutual fund? How do we decide on that?

Financial Advisor: We'll look for a fund that has a consistent performance history and a
management team with a solid reputation. I'll provide you with a few options, and we can
discuss the details of each to find the best fit for your portfolio.
Financial Advisor: As for the $70,000 in your general savings account, consider investing
50% ($35,000) in a growth and income mutual fund, which aims for both capital appreciation
and income. The remaining 50% can be kept in a high-interest savings account or a short-
term GIC for liquidity and emergency funds.

Suman: Is it wise to keep such a large portion in a savings account or GIC, given the low
interest rates?

Financial Advisor: It's a valid concern, Suman. However, maintaining some liquidity is
important for emergency funds and short-term needs. We can reassess this allocation
periodically and make adjustments based on changes in interest rates and your financial
situation.

Japjyot: Sounds good. How do we get started with implementing these investments?

Financial Advisor: I'll assist you in selecting the specific ETFs and mutual funds that best fit
your needs. We'll then proceed with setting up the investments within your TFSA and general
savings account. I'll also provide ongoing support to monitor and adjust your portfolio as
necessary to keep it aligned with your financial goals.
Suman: Perfect Nidhi, do you have any suggestions for our mortgage?

Financial Advisor: Absolutely. Lastly, I recommend considering term insurance to protect

your family's financial security, especially given your mortgage. Term insurance can cover
the outstanding mortgage balance in case of premature passing, ensuring your family can
remain in the home without financial burden. Have you explored this option?

Suman: We haven't looked into term insurance yet, but it seems like an important aspect to
consider.
Japjyot: Nidhi, why do you suggest term insurance for our mortgage protection instead of
mortgage insurance.

Financial Advisor: That's a great question! I recommend term insurance over mortgage
insurance because it provides more stable and predictable coverage, as the benefit amount
remains constant throughout the term. Additionally, term insurance gives your family the
flexibility to use the payout as they see fit, not just for the mortgage, and it's generally more
customizable to fit your specific needs and budget. With mortgage insurance, the coverage
decreases over time while premiums stay the same, so you might end up paying more for less
coverage.
Suman: Sounds great!

Financial Advisor: I'll provide you with some options to consider for term insurance based on
your needs. Now, do you have any other concerns or questions about your financial plan?

Japjyot: No, I think you've covered everything we were concerned about. Thank you for the
comprehensive plan, Nidhi.

Suman: Yes, thank you, Nidhi. We feel much more confident about our financial future now.

Financial Advisor: Wonderful. Before we conclude, I want to ask for your feedback. Did you
find today's discussion helpful, and do you feel confident moving forward with this plan?
Suman: Absolutely, I feel much more at ease now.
Advisor: That's fantastic to hear. Finally, do you know anyone else who might benefit from
our services? I'd appreciate any referrals or recommendations you could provide.
JK: Yes, I can think of a couple of friends who might be interested. I'll definitely pass your
information along.
Advisor: Thank you so much. It's been a pleasure working with you, and I look forward to
helping you achieve your financial goals.
JK: Likewise, thank you for your assistance.
Advisor: You're welcome. Have a great day, and I'll be in touch soon to finalize everything.