John age $45,$ Emily age $45,$ Son Nick $16,$ Daughter Sarah $17.$

John works for Suncor Energy earns $$75,000\mathrm{.}00$ CAD $($T$4$ Tax Slip$)$ per year $30\mathrm{.}5\%$ combined average tax rate. He has worked at Suncor for $15$ Years.

Emily works for Co$-$Op Wine and Spirits part time earns $$25,000$ CAD per year $25\%$ combined annual Tax rate. She has worked for Co$-$op for $10$ Years.

Nick and Sarah are in High School.

They have no Will, POA or Personal Directive

Key Goals:

$1.$ To pay off mortgage when they retire at age $65.$

$2.$ Reduce Debt

$3.$ Retire at $65$ with $70,000$ pre$-$tax Family Income.

$4.$ Contribute $50,000$ toward their Children$$s Post$-$secondary Education.

Assessment Questions:

What is they family Net Worth?

What is their monthly cash flow after expenses?

What budgeting recommendations do you have for them?

In your view will they achieve their Retirement and Education goals?

Financial Assumptions:

Home $$400,000$

Auto $65,000$

Household Items $30,000$

Credit Card Debt $(21\%$ APR$)25,000$ outstanding, they are making the minimum monthly payment $1\%($Calculate the payment$).$

Current outstanding mortgage $$300,000\mathrm{.}00,25-$year amortization, $2\mathrm{.}5\%$ Fixed $5$ Year Term with semi$-$annual compounding $($The Current term is ending next Month and the new rate will rise to $5\mathrm{.}6\%$ for a $5$ Year Fixed rate, semi$-$annual compounding$),$ The Current monthly payment is $=$ $$1,343\mathrm{.}90$

Personal Line of Credit $($Unsecured$)$ They have $$12,000$ outstanding and are making the minimum monthly payment of $3\%$ on all outstanding balances. $($Calculate the monthly payment$)$

Home Insurance fee $$125\mathrm{.}00$ per month

Term Life Insurance for John, $$100,000$ T$-10$ Policy Expiring in $2025,=$ $$50\mathrm{.}00$ per month

Auto loan $$65,000$ on recent purchase of new BMW$,$ Monthly payment $$1,110\mathrm{.}00$ per month the load is dealer financed at $1\%$ Annual Interest, $5$ Year term.

Food $$550\mathrm{.}00$ month $($Inflation on food $13\%$ year over year$)$

Investment Savings in TFSA $$18,000\mathrm{.}00($Balanced Mutual fund $7\%$ ROI expected$)$

RRSP $$25,000\mathrm{.}00($Balanced Mutual Fund $7\%$ ROI Expected$)$

Pension plan John Defined Contribution $($Current Value $$125,000\mathrm{.}00$ DCP$-$ Locked in RPP$-$ Balanced Fund $7\%$ ROI Expected$)$

Discretionary Expenses $$700\mathrm{.}00$ per month