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holistic planning
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The situation
After living together for three years in a two-bedroom Toronto apartment, Natalia Meyer*, 32, and Wilson Eto*, 30, are expecting their first child. Natalia, a teacher, is looking forward to maternity leave. A recent round of cuts has hurt morale among her school’s staff and, after almost a decade teaching ninth graders, she’s starting to won- der whether her heart is still in it. She’s taking the full 18 months, during which she intends to seriously consider a career change.
Wilson has been working for four years as a manager at a boutique consumer- packaged goods (CPG) company that sells men’s grooming products directly to con- sumers online. He understands Natalia’s career doubts.
Natalia and Wilson are attached to their apartment in different ways. Natalia consid- ers it their first stop together before buying a place of their own. Wilson, who lived in the apartment before Natalia moved in, is com- fortable as a renter and spooked by housing
prices. He also likes their central neighbour- hood, where they likely couldn’t afford to buy.
Wilson would be content to stay put for the time being and see what happens after Natalia’s mat leave — with both her career and the housing market. Though the couple has no plans to marry, Natalia has always seen a family and a house as inextricable, and she wants to buy before prices get any
higher. After all,
she has the money.
In addition to her
$70,000 salary and
defined benefit
pension, Natalia
has a $600,000
inheritance from
her father, who
died when she was
a teenager. Wilson,
who earns $75,000
per year, has just
over $40,000 saved
in a TFSA.
With a child and a possible career change on the way, this couple needs a financial plan
by Suzanne Yar Khan
Wilson and Natalia have never used
an advisor. They’ve also never purchased insurance, aside from the tenant’s cover- age Wilson bought from his bank. As they prepare for dramatic changes to their family and, potentially, their income, they’ve decided it’s time to develop a financial plan.
* These are hypothetical clients. Any resemblance to real persons is coincidental.
This is
the first in a four-part series following Natalia and Wilson through continuous life stages
Can these parents-to-be afford a house?
ADVISOR.CA 25
Matthew Ardrey
Vice-president,
Linda Levesque
Senior investment advisor, director of the private client group, HollisWealth, Toronto
Answers have been edited for length and clarity
Rory Tufford
Investment advisor, portfolio manager, CIBC Wood Gundy, Toronto
wealth advisor, TriDelta Financial, Toronto