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Financial Planning write the Risk Management ( insurance ) , Investment Planning and Retirement Planning for the case study below.The Pikes Chris ( 3 0
Financial Planning write the Risk Management insurance Investment Planning and Retirement Planning for the case study below.The Pikes
Chris and Una Pike were married five years ago, only months after graduating from Red Deer Polytechnic. Chris has a BBA degree and is employed with a large manufacturing firm earing $ per year. Una has a Bachelor of Nursing degree and works as a RN in a doctor's office. Her annual income is $ They estimate their after tax incomes to be about $ and $ respectively. Both Chris and Una have extended health benefits and longterm disability insurance benefits through work. Chris also has times his salary in life insurance benefits.
The Pikes currently live in a bedroom home in Red Deer that they rent for $ per month.
hris and Una have two children; a son Anson who is years old and a daughter Rebecca who is
UC
Una has just returned to work following a year of maternityparental leave following the birth of Rebecca. They are paying $ per year for child care.
Chris and Una were given $ as a wedding gift from Chris's parents with the stipulation that they use it for a down payment on their first home. Chris and Una have been adding $ per month to the savings account for the past years and now have $ They plan on buying a bedroom home near the home they are currently renting. They expect to pay about $ They want to buy the home in year as they want a threebedroom home so each child can have their own bedroom by the time Rebecca is two years old. They are not sure how much they need for a down payment but are hoping they will have enough.
Once Chris and Una purchase their home, they expect to need about $ to $ for furniture, window coverings, yard tools lawnmower rake, shovels etc.
Una drives a yearold Honda Accord valued at $ and Chris drives a yearold Honda
CRV valued at perhaps $ Chris purchased his CRV new for $ He financed the purchase with a six year $ car loan at His monthly payment is $ and his current balance is approximately $Chris and Una plan on replacing Una's car with a minivan in three years. They will buy a slightly used van and expect to pay about $in today's dollars Chris plans to replace his car in years. He also will buy a slightly used vehicle and expects to pay about $in today's dollarshris and Una have student loan balances totaling $ They pay S per month and the interest rate is They also have a $ balance on a joint credit card from last summer's vacation. They are paying $ per month and the interest rate is
Chris has been contributing $ per month to a RRSP account and his current balance is about $
The Pikes monthly expense include: utilities S renter's insurance $ groceries and household stuff $ clothes budget $ haircuts and personal care $ entertainment and eating out $ health club membership and sports fees $ hobbies $ gifts budget charity $ travel budget $ auto insurance $ auto maintenance budget $ auto fuel and oil changes $ misc auto $
One of the Pikes current concerns is what would happen to the family finances if one of them were to die or to get sick or hurt and be unable to work. A friend of Una's told them they should be looking into life insurance. With plans to take on a mortgage and the children being so young they want to make sure they are prepared should something happen to them. They both are currently in good health so they feel now is the time to look into life insurance.
The Pikes have exciting plans for the future. They would like to purchase their home in year. They want to be in control of their financial future therefore they would like to get out of debt as soon as possible so they only debt they have going forward is their home. They want to be able to take family vacations without putting the trip on their credit card and then stressing over paying the balance off. They also want to be able to save for their vehicles in the future so they don't have to take on debt. In addition they know how valuable their university education is for themselves and they want to be in a position to pay for their children's tuition for years of university.
The Pikes feel good about how they have managed their money to date. However they are not sure what they should be doing to make sure they can achieve their goals and they don't really know if what they have been doing is what they should be doing. They have come to you looking for help in creating a financial plan.
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