Information

A recently married couple just graduated from post-secondary education and they both have started full-time, well-paying jobs. They have come to you as a Financial Planner for advice. Of course, they are very interested in taxation and want to be sure that you consider the tax consequences and taxs impact on decision making in any advice you provide!

You sat them down and during your interview you discovered the following information:

The couples names are Mark and Suneeta. They are 30 and 29 years old. Mark earns $130,000/year in his job on salary and Suneeta earns $95,000 on salary. Both of these are gross salary (before tax and deductions).

Each set of parents gifted the couple $50,000 cash, for a total amount of $100,000. The married couple say they each have $30,000 of RRSP room available (before they started their jobs this yearso from last year). The couple owes $20,500 in student loans ($15000 for Mark and $5500 for Suneeta).

Their goals include paying off their student loans, buying a house in the next few years, maybe having a couple of children and possibly eventually getting a vacation home, or travelling a bit. They also would like to do some saving, and especially for retirement.

They think they can live off approximately $70,000/year (rent, cars, food, etc.). They expect to pay about $750,000 to $850,000 for a house and make a 10% down payment at the time of purchase.

Design a plan for this couple to try to achieve their goals and objectives.