I have a case study assignment for financial planning class.

Here is the case study.

A man has a high income-$73,000 and his wife had income $53,000(and a $10,000 bonus) plus some solid investments. But his wife was fired. They have two children. They have a house worth $250,000.

They wonder whether they should take $15,000 out of the husband's non-registered investments, leaving in the $23,000 needed to generate the interest income that goes to monthly martgage payments and put it into an RRSP and pay off their line of credit. Though he only has $6,000 in contribution room, his wife has $35,000. Would the tax refund be worth it? Before retirement happens,however, they need to figure out how to fund two major expenses that are about five years away; montessori school (about $8,000 annually for both boys) and anothet home renovation (to add a bathroom and a bedroom, so both boys can have their own room).

His income is same as their expenses, which means they spend all of incomes as expenses. Their assets, including house, vehicles, RRSP(wife), RRSP(husband), investments(husband), Pension plan(husband) are total of $569,971 and liabilities, including mortgage, truck loan, line of credit, credit card, are total of $121,400.

The net worth is $448,571.

I have to give them financial advice.

What advice can I give them?