The Henderson Family: 127% net worth growth in 3 years

The Situation

Sarah and Tom Henderson had done what most young professional families do: they worked hard, bought a house, had children, and trusted that everything was 'probably fine' financially. They had group benefits at work, money going into something-like-retirement-savings, and no major debt beyond the mortgage.

What they didn't have was a plan. No wills. No estate documents. No RESP for either child. No disability insurance beyond what their employers provided — which, in both cases, covered 60% of salary for a maximum of two years. No formal savings allocation. No mortgage strategy. And no coordination between their two RRSP accounts.

They came to us when Tom's sister — a WealthFusions client — suggested they get a proper financial review before their second child turned 1 and the window for early RESP catch-up grants closed.

The Strategy

Estate foundation first. Before any investment decision, we ensured the legal foundation was in place. Wills drafted, powers of attorney executed, and every account beneficiary designation reviewed and aligned. This took 60 days and protected everything they'd built.

RESP maximization. With two children under 6, Sarah and Tom had years of CESG grant eligibility ahead of them. Two RESPs were opened, contributions set at $2,500 per child per year — the amount that maximizes the $500 annual government grant. Over each child's 18-year horizon, the CESG alone adds $7,200 per child in free government money.

Insurance restructuring. Group benefits provide false security for young families. Both Sarah and Tom's group disability policies had maximum two-year benefit periods — far too short given their mortgage and young children. Personal disability policies were put in place covering 70% of after-tax income to age 65. Life insurance of $750K each was structured as 20-year term — covering the mortgage, income replacement, and education funding in a worst-case scenario. Total monthly premium: $310.

Mortgage acceleration. Adding $400/month to their mortgage payment — a figure they could absorb from budget optimization — reduces their amortization by 4 years and 3 months, saving $67,000 in interest over the life of the mortgage.

RRSP coordination. Tom is projected to be in a higher tax bracket in retirement than Sarah. A spousal RRSP structure was implemented — Tom contributes to Sarah's spousal RRSP, equalizing future retirement income between spouses. Projected income-splitting saving at retirement: $18,200 per year.

The Outcome

In the first three years of the plan, the Henderson family's net worth grew from $214K to $502K — a 127% increase. This came from three sources: mortgage principal reduction, RRSP and TFSA growth, and RESP accumulation (including CESG grants).

The plan projects their net worth at year 10 at $1.24M — assuming no change in income and no investment return above 6.5%. The combination of disciplined, automated saving across the right accounts, mortgage acceleration, and tax optimization does the work.

Sarah's summary of the experience: 'Having one advisor who understood all of it — mortgage, kids' education, our retirement, and our insurance — changed everything.' That coordination is exactly what fragmented single-product advisors cannot deliver.