1. A maximum one-page, cover letter/executive summary, in business format that:

Lists the clients objectives

Summarizes your major findings and any urgent actions they should take.

2. Outline the risk management process for your clients. At each step, give them an example of what you would do to ensure the step is demonstrated adequately and professionally. For example, list the objectives, identify the risks Jack and Jill face, et

Jack-Jill Case.pdf + File C:/Usersicol/OneDrive/Tai%20liu/Canadian%20Investment%202/Jack+Jill%20Case.pdf Not syncing Client Situation You are a financial planner with a specially in risk management. You've completed the LLOP' and are licensed to sell insurance products. You love your career and have built a successful practice hnsed mainly on referrals from your satisfied clients. Jack, age 49. and Jill, age 48, are one of those referrals. Jack is Vice-President of Marketing at a mid-sized systems firm. His salary is $190.0001 + hanus. Last year his bonus was $410,001). Jill is an accountant in private practice. She works from home and typically bills S150,000 a year (roughly S100,000 nfter expenses). They feel pretty comfortable financially but have asked you to flag any gaps that you can see in their risk management strategy. They also have specific questions that they'd like you to ddress Jack and Jill are married with two children who live at home: Tracey, age 22 and Travis, age 17. Jill's mother, lauren ape 75. is widowed. Although she is financially independent, she moved in with Jill and her family after the recent death of her husband. She contributes to the family's expenses and is especially devoted to her granddaughter, Tracey Tracey, a happy and outgoing woman, was bom with Down Syndrome, a common genetic disorder. Otherwise, Tracey is in good health and could easily live to age 60). Jack and Jill would like to keep Tracey at home as long as possible but they are concerned about her ability to adapt if one or both of them dies unexpectedly. As a result, they're considering moving her into a group home in their city. The group home provides full support to residents. The fee for this year is S58.250. Tracey has seen the place and likes it, in no small part because her boyfriend lives there. Travis will finish high school this year and start college in the fall. He's been accepted into a systems engineering program, considered the top such progrants in Canada. As the college is in his home town, he'll be able to live at home. On graduation, he hopes to find employment locally s he can continue to live near his sister, with whom he's very close. Jack and Jill have invested the maximum in a RESP for Travis and the FMV is 371,415. Given that they will soon start making withdrawals from the plan, they recently switched the investment portfolio to a mix of cash and GICS. While it's been a struggle for Jack and Jill to manage the diverse needs of both children. they love them both deeply and want to make sure they're set up to be successful in life. This means ensuring enough funds are available to support Tracey in the group home for as long as she lives. In Travis's case, they intend to pay his annual tuition and related expenses for an undergraduate degree (and a gradunte degree should be decide to pursue one). As Travis will likely continue to live at home during this period, they estimate the cost of his education at $15,000 per year for the next six years. They'd also like Travis to have extra money once he graduates, to buy a home or start a business. The amount they have in mind for that is $51X0,00%). Aside from these financial obligations, they plan to retire in 18 years and spend all their hard-earned money having fun! 2 Type here to search 9 ENG 7:52 PM 2021-03-15 Content https://learn-ca-centrx Bb Microsoft Word - Chp x * Homework Help - QAX Messenger Microsoft Word - Cas X - 110 simple ways to tak X + >> e File C:/Usersicol/OneDrive/Ti%20liu/Canadian%20Investment%202/Jack-Jill%20Case.pdf EN: = Microsoft Word - Case-Jack+Jill 3/8 80% + Current Insurance Coverages Jack's group bencfits from his employer include the following: Life Insurance. Two times salary (excluding honus or commission) to a maximum of $200,000 Dependant Life Insurance: $10,000 on the employee's spouse, 55,000 on each of the dependent children Disability Insurance Provided with 60% of salary up to a maximum of $4,000 per month, "regular occupation" definition for the first two years defaulting to "any occupation thereafter, 180-day elimination period, benefit period to age 65 and partial disability benefits. Extended Plewith Coverage: The plan covers Jack, his spouse and dependants. There are no deductibles and no maximums. Coinsurance is 80%. Dental Coverage: Jack's plan provides comprehensive coverage. Cuinsurance is 80%. The annual maximum lor basic restorative is $2,000. In addition to his group benelis, Jack has an individual lung Lerm disability policy that he bought years ago. The benelil is $2,000 per month in the event of his lolal disability, defined as the worker's "regular"Occupation and defaulting to any occupation after two years. The elimination period is 60 days and the henefit period is to age 65. There are partial, but no residunl, benefits. He also owns a Manulife universal life insurance policy (see abbreviated copy attached). Jack's beneficiary on his life insurance policies is Jill. Jill has no group benefits. However, she has private coverage for life and LTD insurance. She has a $250.000 Term 10 policy and a $25,000 participating whole life policy that her parents took out for her when she was a child. The dividend option on the latter policy is "cash". Jack is the beneficiary of both policies. Her LTD coverage will provide a monthly benefit of $3,800 on total disability defined as "regular occupation". The policy has a rider that extends the regular occupation definition to age 65. The climination period is 60 days. Like Jack's plans, there is partial coverage, but not residual. Both Jack and Jill pay the premiums for all their LTD coverage. Current Investment Assets When Jill's Cather died six months ago, she received $50.000 from a life insurance policy on his life. She put the funds into a one-year GIC, which she saw as a temporary move until she could figure out how best to invest the money long-term. Both Jack and Jill feel that, with the mortgage paid off, if one of them died the survivor could manage well on his/her continuing income plus the couple's joint savings 3 Type here to search 9 ENG 7:57 PM 2021-03-15 Content https://learn-ca-centrx Bb Microsoft Word - Chp x * Homework Help - QX Messenger Microsoft Word - Cas X - 10 simple ways to tak x + >> e File C:/Usersicol/OneDrive/Ti%20liu/Canadian%20Investment%202/Jack-Jill%20Case.pdf EN: = Microsoft Word - Case-Jack+Jill 4/8 80% + Since Jack and Jill plan to spend all their invested assets in retirement, they expect the planned legacies for Travis and Tracey and their final expenses at death will be covered solely by their cxisting life insurance. They're not sure if their life insurance is sufficient, but that's their plan Jack and Jill estimate the value of their home at S1,675,000. They have a small mortgage of $215,000 with EMO. This is their only debl. The mortgage is insured with BMO and the wulstanding balance will be repaid should either Jackor Jill die. They recently updated their hume and car insurance. They have two cars and, up until last year, they parked both cars outside in the driveway. But last fall, anticipating a particularly cold and wel winter ahead, they added a carport to the side of their house. During this process, they mudified and enhanced the entrance to the home and updated the landscaping at the front of the properly to give the house mure "street appeal. Their general agent pointed out that, because earthquakes have happened in the GTA- twice in the past 20 years alone, they might want to consider adding a rider to their property insurance policy to insure their home against earthquake-related damages. But, thinking the odds of this very remote, they decided their existing property insurance was adequate and declined the extra protection Retirement Planning Issues Aside from the mortgage, which is insured with BMO, Jack and Jill have no debes. Their "spendable" assets, in addition to government benefits, include the following: Jack Jill GIC $ 50,000 Self-directed RRSP $ 91,025 $185.530 LIRA $ 75,280 RPP $335,011 Investment Purtfolio $495,685 CV Life Insurunce $ 48,361 $ 13,961 Due to his salary and subsequent RPP contributions) Jack's RRSP contributions are minimal. From her employment prior to working independently Defined contribution plan. Contributions are 5% of salary and matched by employer. Non-registered, diversified portfolio with focus on growth. Originated from an inheritance Jack reorived after the death of his parents. Included for information purposes only. Since Jack and Jill view their life insurance policies as escutsal for meeting the financial needs of Tracey and Travis, they don't plan to surrender them. Jack and Jill manage their respective investment portfolios and Jack manages the accumulation fund in his UT. policy. They've been investing on their own since they started earning money. They feel confident and find it interesting. They helieve they can achieve a rate of return equal to 3% a year. 4 Type here to search O AL ENG 7:58 PM 2021-03-15 Jack Jill Case.pdf File C:/Usersicol/OneDrive/Tai%20liu/Canadian%20Investment%202/Jack+Jill%20Case.pdf Not syning Jack and Jill manage their respective investment portfolios and Jack fand in his UL policy. They've been investing on their own since they started coming money. They k manages the accumulation feel confident and find it interesting They believe they can achieve a rate of return equal to 3% a year Estate Planning Issues Jnck and Jill have minor wills. Anticipated final expenses include their funerals and the executors and accountants' fees. They've estimated that $50,000 for ench of them should be adequate to cover these expenses. They are each other's beneficiary. After both have died, the net estate proceeds will be divided equally between Travis and a trust for Tracy. They both also have Powers of Attorney for Property and for Penal Care Tax Planning Issues Other than investing in their RRSPs and a vague awareness income taxes at death. Jack and Jill haven't thought much about income taxes. They both have an average tax rate of 35%. Since they plan to spend all their money in retirement, they don't foresee any major tax liability on their death. Type here to search O g ENG 8:04 PM 2021-03-15