- Years for insurance income to last
- Number of years your spouse will need to use your insurance
proceeds to provide for living expenses and income.
- Existing life insurance
- Total amount of life insurance coverage you currently have for
yourself.
- Inflation rate
- This is the rate that you expect your expenses and income to
rise. Your total expenses and earned income are increased by this
rate for each year you require income.
- Return on investments (after tax)
- The annual percentage rate you expect to earn on your savings.
This includes any insurance proceeds and your educational savings.
You may wish to use a more conservative rate of return if you will
need to begin using your insurance proceeds immediately. The actual
rate of return is largely dependent on the type of investments you
select. From January 1970 to December 2008, the average annual
compounded rate of return for the S&P 500, including
reinvestment of dividends, was approximately 9.7% (source:
www.standardandpoors.com). During this period, the highest 12-month
return was 61%, from June 1982 through June 1983. The lowest
12-month return was -39%, which happened twice, once from September
1973 to September 1974 and again from November 2007 to November
2008. Savings accounts at a bank may pay as little as 1% or less
but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are
hypothetical and that future rates of return can't be predicted
with certainty and that investments that pay higher rates of return
are generally subject to higher risk and volatility. The actual
rate of return on investments can vary widely over time, especially
for long-term investments. This includes the potential loss of
principal on your investment. It is not possible to invest directly
in an index and the compounded rate of return noted above does not
reflect sales charges and other fees that funds and/or investment
companies may charge. This calculator compounds all growth
annually. For the purposes of this calculator taxation is not
factored into the results. If you pay taxes on the interest,
dividends or capital gains you should enter your after tax rate of
return.
Insurance products may additionally include mortality, expense
risk charges, cost of insurance, administrative, and surrender
charges that will have a significant impact on the total rate of
return for the investment.
- Home
- Current value of your home. This should be as close as possible
to the actual market value of your home. If you have owned your
home for a number of years, the current market value could be
significantly higher than your original purchase price.
- Other real-estate
- The value of any other real-estate you may own. Include second
homes, undeveloped land, rental property or any commercial
buildings you may have an interest in. As with your home, use the
actual market value of this real-estate.
- Automobiles
- This is the total value of all automobiles that you own. Do not
include any leased vehicles.
- Other vehicles
- If you own any other vehicles, such as RVs, campers or
collectibles, enter them here.
- Jewelry
- The value of any jewelry, gems or precious metals such as gold.
If you have owned these items for a number of years they may have
appreciated in price, remember to use the current market
value.
- Other personal property
- The value of other assets. This might include items such as
furniture, home electronics, silverware, etc.
- Registered retirement accounts
- The current total balance of your registered retirement
accounts. This would include RRSPs (term deposits, mutual funds),
RRIFs, Employer Pension Plans, annuities and any other registered
retirement savings you may have.
- Bonds
- If you own any Treasury, municipal, or commercial bonds enter
the total here.
- Stocks
- If you own any individual stocks, enter the total here. Again,
do not include any stocks that are held in a registered retirement
account.
- Mutual funds
- If you own any mutual funds, enter the total here. Do not
include any mutual funds that are in your registered retirement
accounts, they were already included in the "Registered retirement
accounts" line.
- Guaranteed Investment Certificates
- If you own any Guaranteed Investment Certificates enter the
total here.
- Checking and savings
- The current total balance of your checking and savings
accounts.
- Liquid assets
- If you have any other cash or liquid assets, enter the total
here.
- Other investment assets
- If you have any other investment assets of value, you can enter
the total here.
- Home mortgage principal
- This is the current principal balance remaining on your
mortgage. This is the amount that you would have to pay to own your
home free and clear.
- Other mortgage principal
- This is the current principal balance for any other real-estate
mortgages you may have. This includes mortgages on rental property,
undeveloped land, commercial property or any other
real-estate.
- Auto loans
- Total amount you currently have outstanding on your auto
loans.
- Student loans
- Total amount, if any, that you currently owe in student loans.
You should enter the total outstanding even if these loans are
currently in deferment.
- Credit card debt
- Your total credit card debt.
- Other loans
- Total amount, if any, of any other loans you may have.
- Taxes on assets
- Estate taxes are required to be paid upon your death.
- Probate costs
- Probate costs cover legal fees for disbursing the assets of the
deceased. You may incur significant probate costs even if you have
a will.
- Funeral costs
- All costs required to cover the cost of the funeral.
- Other expenses
- Any other expenses you might have that would need to be paid if
you or your spouse died.
- Current age of children
- Current age of your children. This calculator is based on each
child beginning their college education at age 18. The difference
between their current age and 18 is the number of years you have to
save.
- Annual tuition and books
- Current estimated cost of one year of tuition and books. This
amount should be per child and be specific to the school they may
be interested in attending. For the purposes of this calculator all
expenses are assumed to be due at the end of the year.
- Living expenses
- Current estimated cost of one year living expenses. Like
tuition and books, this amount should be per child and specific to
the school they may be interested in attending. For the purposes of
this calculator all expenses are assumed to be due at the end of
the year.
- Surviving spouse's monthly income
- Input your income from your paycheck. Click on the button
"Income Calculator" to enter the details of your surviving spouse's
paycheck and any deductions.
- Monthly living expenses
- This is the total of all of your monthly expenses. Click on the
button "Living Expenses Calculator" to enter your monthly expenses.
This includes your expenses for housing, insurance, loan payments,
utilities, and other miscellaneous items.
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