Foresters: Financial Calculators Help

	Terms		Definitions
	Cash and savings		Total amount in cash, or any other savings that can be accessed to help cover expenses.

	College fund for children		A lump sum to be put aside for your children to pay for their college education (see http://www.cbc.ca/news/background/education/tuition.html for average costs).

	Current assets		All assets available to your family to be liquidated and used for ongoing living expenses and/or immediate debt repayment.

	Current debts		Total of current debts, including mortgage, credit cards, loans, etc.

	Current life insurance		Total amount of life insurance coverage you currently have for yourself.

	Debt repayment		Credit card debt, auto loans, home equity loans, mortgages or other debt requiring repayment.

	Duration in years		This value represents how many years your family will continue paying a particular expense or continue receiving a particular income.

	Expected rate of return on current investments		6.0% is only a default value. The annual rate of return for your investments is largely dependant on the type of investments you have. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are 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.

	Expenses at death		Total of all expenses that would be incurred upon your death. (Consider everything from funeral costs to inheritance or estate taxes, probate, a university fund for your children, the cost of education in the event your spouse needs to retrain her/himself to re-enter the workforce, any other expenses that your family may incur.) No amount has been included for income taxes payable upon death.

	Expenses during retirement		Total monthly expenses anticipated by your spouse during retirement (often estimated as a percentage of current salary). Take into consideration how many years retirement will potentially last.

	Family's gross income		Monthly ongoing income, before taxes are deducted, earned by your spouse and/or any other family members contributing to your family’s household after your death. (If your spouse needs education or retraining before entering the workforce, ensure the starting year for this income provides adequate time to complete retraining before the start of work.)

	Funeral costs		All costs involved with the burial/cremation and memorial service/funeral. In Canada, the average cost for a funeral is about $6000 ( http://www.kellyfh.ca/scripts/en_services-ep.cgi ).

	Income tax rate		Income tax rate for this calculator affects interest income from your investments and any income entered from your family’s ongoing income. For more information, please see: Canadian Income Tax Definition

	Inflation rate		Your estimate as to the projected average long-term inflation rate. This has been calculated by the Consumer Price Index from 1925 to 2002 to be 3.1% - this is a default value only. Your total expenses are increased by this rate for each year you earn income.

	Investments		Total value of all investments accessible for use toward living expenses (this is assuming your beneficiary would liquidate these investments).

	Living expenses with children at home		Total monthly expenses while your children are living at home. This should include all monthly expenses including childcare, the additional cost of food, utilities, transportation, mortgage, etc.).

	Living expenses with children gone		Total monthly expenses after your children have left home. This should include all monthly expenses.

	Ongoing expenses		Total of ongoing, monthly living expenses your family will incur over the number of years specified.

	Ongoing income		Total of ongoing, monthly income your family will earn over the number of years specified.

	Other assets		Any other liquid asset accessible for use toward living expenses.

	Other expenses		Any other expenses incurred at the time of your death (not covered under other fields).

	Other sources of income		Any other liquid asset (other than cash, accessible investments, or regular savings accounts) accessible for use by your family toward living expenses.

	Probate costs		Probate costs are legal fees and expenses associated with administering the estate of the deceased. Significant probate costs may be incurred depending on your province of residence, even if you have a will.

	Years until start		If this is not an expense or income currently, but will be in the future, the “Years until start” value represents how many years will pass until this becomes an expense/income for your family.


	502737 CAN (01/05)