Bill and Mary Robins are now both 55 years old and they have worked hard to increase their net worth by increasing assets and paying down debt. As a result they currently have no liabilities and Bill has grown his RRSP to $250,000 and Mary has $270,000 in her RRSP. They each contribute $1,500 per month to these plans and will continue to do so until their planned retirement at age 65. These registered plans are 25% income and 75% equity.

Both Bill and Mary also have a defined contribution pension plan with their employer’s which is worth $200,000 and $250,000 respectively. Their employers will continue to invest 6% of their gross salaries into these plans until their retirement, with contributions added yearly at the end of the year. Bill is currently earning $80,000 gross per year and Mary is making $95,000; they are both at the maximum salary for their positions.

In addition, they have a joint non-registered portfolio worth $125,000 which is allocated 50% bonds and 50% growth equities. This non registered fund currently has an unrealized capital gain of $50,000. This portfolio pays no dividend income. They expect this fund to continue to grow by 8% per year with half of this growth resulting from capital gains which would remain deferred until they sell the securities.

Their house is held in joint tenancy and they have designated each other as beneficiary on their RRSP and Pension Plans. The non-registered account is held in joint names with rights of survivorship.

REQUIRED – 50 marks

1. Assuming 6% annual compound growth, what will the value of Bill and Mary’s RRSP be at age 65? Using the same growth rate, what is the value of their pension plans? Show these amounts separately for both Bill and Mary. (4 Marks)

2. If they leave their asset allocation the same and continue to earn 6% per year after tax what annual income could they each pay themselves from their RRSP and Pension plans without encroaching on capital? (4 Marks)

3. If they convert their RRSPs to a RRIF what is the minimum payment required based on their age 65? What is the minimum if they wait to withdraw the funds at age 71? State the minimum as a percentage and annual dollar amount (2 Marks)

4. If they were both eligible to collect the maximum CPP and OAS at age 65, what would their gross individual retirement incomes if they withdraw 6% from the pension plans but defer their RRSP/RRIF withdrawals to age 71? (6 Marks)

5. If they both have a marginal tax rate of 43%, how much additional tax will they each pay on the annual interest income from the joint non-registered account. How much tax will they pay each year on the unrealized capital gains? The taxable income from this portfolio is split evenly between Bill and Mary. Please do the calculation based on the value on the non-registered account at their age 65. ( 6 Marks)

6. They would like to purchase an RESP for their grandchildren aged 2 and 4, and also create a TFSA for themselves. They are medium risk investors and they don’t expect the grandchildren to attend University for another 13 to 15 years. They also want to shelter as much tax as possible inside the TFSA. Please recommend two specific mutual funds for these objectives and explain why you are recommending these funds. ( 8 Marks)

7. If Probate fees in the Province of BC are .6% on estate assets valued between $25,000 and $50,000 and 1.4% for assets above $50,000, how much would the Robins estate need to pay if only Bill died at his age 65? Assume that Mary is the beneficiary of his RRSP and Pension Plan; and that the house and non-registered account is in joint names with rights of survivorship. Assume the value of the home on Bill’ death to be $800,000. (2 Marks)

8. How would these probate fees change if the estate was the beneficiary of Bill’s RRSP and Pension Plan and the principal residence was held as tenants in common as opposed to joint tenancy? What is the amount owed in this scenario? (6 Marks)

9. Is it important for Bill and Mary to name a guardian in their Will, if so why? Also, what are some important characteristics that their executors should have in the event that both Bill and Mary die at the same time? (6 Marks)

10. If the investment markets are performing poorly when Bill and Mary are both aged 85 years old and they are concerned about outliving their capital, what options are available to them to ensure a guaranteed income for life? What factors determine if these options are a good choice or not? (6 Marks)

 

 

 

Sample Solution

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.

God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.