Bruce and Brenda are age 45. They have retail jobs earning $35,000 per annum each. The have one child, age 12. They rent a small apartment and live pay cheque to pay cheque. They have little in the form of savings, they provided you with their net worth statement and cash flow details.

1. Discuss their portfolios and suggest changes you deem appropriate stating WHY these changes should be made. This applies to both the accounts and holdings. (20 marks)
2. How would you suggest they draw upon assets and income for retirement based on your suggested changes from part a? Also provide a suggested savings plan based on their current financial details. (15 marks)
3. Discuss their insurance needs and suitability of their current coverage. No calculation required, just a discussion. (10 marks)

Net Worth Statement Assets: Liabilities: 1,200 Car loan 8,000 2,000 200 Bank account Non-registered Account: Non-redeemable GIC - 120CT2020 1.95% RESP Account: Canadian Equity Mutual Fund RRSP Account - Bruce: Market linked GIC Utilities - 05JAN2023 RRSP Account - Brenda: Balanced Mutual Fund Car Whole Life Insurance CSV - Money market fund 5,000 6,200 12,000 35,000 Total Asset 61,600 Total Liabilities 8,000 Net Worth 53,600 Cash Flow Statement Income after deductions Brenda Bruce Total Monthly Income 2,354 2,354 4,708 Expenses: Rent Utilities Food Car expenses Car loan Communication Haircuts / prescriptions etc. Transportation bus / uber, etc. Whole life insurance Misc. Total Monthly Expenses 2,300 200 600 500 200 350 150 100 150 158 4,708