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BFIN 3 8 0 Section A Worth: 1 5 % Due Date: April 1 4 Type: Individual ( typed clearly in document ) Instructions: Submit
BFIN Section A Worth: Due Date: April Type: Individual typed clearly in document Instructions: Submit case to tony.wrobel@sait.ca between pm and :pm on due date Late Submission: penalty Case #: Cashflow Josephine, a CFP professional, is meeting Alex, age for the first time. Alex works as an Aviation Technician for WingSPAN Corp. His parents passed away from a motorboating accident when he was four years of age. In the aftermath, Alex inherited the family home, which he owns outright and in sole name. After deductions, Alexs monthly take home pay is $ He would like to retire at age and believes he has a life expectancy of Alex informs Josephine that he wants to purchase a vacation property in Truth or Consequences, a city he visits frequently in New Mexico. The property will cost him CDN $ He also mentions that he will not make the purchase until he is able to pay for it outright. Below is list of Alexs regular expenses: RSP contributions: $ per month Utilities: $ month Clothing: $ month Meals and Entertainment: $ month Property taxes: $ per year Vehicle payment: $ per month Vehicle Insurance: $ per year Food: $ per month Cell phone: $ per month New Mexico trips: per year at $ each Alex currently has $ in his RSP which is his primary retirement savings vehicle. He also owns a nonregistered savings account valued at $ACB $ The nonregistered account is earmarked for his vacation property goal. His KYC form indicates that Alex has a conservative risk tolerance and that his current asset mix is consistent with this assessment. Based on the asset mix and projected inflation rate, an assumption of a real return, compounded monthly has been projected for both of his portfolios Alex also mentions that a Robo Advisor at another bank recommended that he invest more aggressively to benefit from higher expected returns. Alex has asked Josephine for her opinion. By completing a cash flow statement, determine how much Alex is able to add to his non registered savings at the end of each month. marks Cash Flow Statement Income Expense item Monthly Amount $ Monthly Savings $ Calculate the number of months before Alex is able to purchase the New Mexico property, ignoring any tax implications. marks Calculate the projected value of Alexs RSP account at retirement and the projected monthly income available during retirement. Ignore RIF minimums marks Account Value at Retirement: Projected Monthly Income During Retirement: Briefly explain two elements of Alexs circumstances that could indicate his suitability to change to a more aggressive asset allocation in his retirement portfolio and two elements of Alexs circumstances that could indicate that a more aggressive asset allocation is not suitable. marks Two factors suggesting more aggressive asset allocation IS suitable Two factors suggesting more aggressive asset allocation is NOT suitable
BFIN Section A
Worth:
Due Date: April
Type: Individual typed clearly in document
Instructions: Submit case to tony.wrobel@sait.ca between pm and :pm on due date
Late Submission: penalty
Case #: Cashflow
Josephine, a CFP professional, is meeting Alex, age for the first time. Alex works as an Aviation Technician for WingSPAN Corp. His parents passed away from a motorboating accident when he was four years of age. In the aftermath, Alex inherited the family home, which he owns outright and in sole name. After deductions, Alexs monthly take home pay is $ He would like to retire at age and believes he has a life expectancy of Alex informs Josephine that he wants to purchase a vacation property in Truth or Consequences, a city he visits frequently in New Mexico. The property will cost him CDN $ He also mentions that he will not make the purchase until he is able to pay for it outright.
Below is list of Alexs regular expenses:
RSP contributions: $ per month
Utilities: $ month
Clothing: $ month
Meals and Entertainment: $ month
Property taxes: $ per year
Vehicle payment: $ per month
Vehicle Insurance: $ per year
Food: $ per month
Cell phone: $ per month
New Mexico trips: per year at $ each
Alex currently has $ in his RSP which is his primary retirement savings vehicle. He also owns a nonregistered savings account valued at $ACB $ The nonregistered account is earmarked for his vacation property goal. His KYC form indicates that Alex has a conservative risk tolerance and that his current asset mix is consistent with this assessment. Based on the asset mix and projected inflation rate, an assumption of a real return, compounded monthly has been projected for both of his portfolios Alex also mentions that a Robo Advisor at another bank recommended that he invest more aggressively to benefit from higher expected returns. Alex has asked Josephine for her opinion.
By completing a cash flow statement, determine how much Alex is able to add to his non registered savings at the end of each month. marks
Cash Flow Statement
Income Expense item
Monthly Amount $
Monthly Savings
$
Calculate the number of months before Alex is able to purchase the New Mexico property, ignoring any tax implications. marks
Calculate the projected value of Alexs RSP account at retirement and the projected monthly income available during retirement. Ignore RIF minimums marks
Account Value at Retirement:
Projected Monthly Income During Retirement:
Briefly explain two elements of Alexs circumstances that could indicate his suitability to change to a more aggressive asset allocation in his retirement portfolio and two elements of Alexs circumstances that could indicate that a more aggressive asset allocation is not suitable. marks
Two factors suggesting more aggressive asset allocation IS suitable
Two factors suggesting more aggressive asset allocation is NOT suitable
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