Mary and Austin Smith have been married for 5 years and have a 4 year old daughter named Lindsay. Mary is expecting her second child in a few months. Mary and Austin are starting to think about their future with the aim of implementing their short and long term lifestyle goals and financial plans. Mary and Austin are both aged 30 For their immediate future they have decided they want to purchase a new house and a new car. The house they want has a value of $800,000 and they are very excited as both Mary and Austin have never owned a home before. They would also like to buy a new BMW automobile with a retail price of $80,000, however they are unsure whether to purchase the car outright or borrow in order to obtain the car. The dealer financing rate is 8.75%. They expect to travel approximately 30,000 km per year Austin works as a college instructor and earns $100,000 gross income ($75,384 after tax), while Mary works for a local small manufacturing business as its chief accountant earning $125,000 gross income (S89,322 after tax). Mary is planning to work full time after the new baby is born but they will have to hire a nanny to replace their current daycare arrange ments. The nanny will not live with them and will cost $2,000 per month vs the $1,000 per month they are currently paying for daycare They enjoy taking holidays and plan to have two holidays each year to the value of $5,000 each. Mary and Austin are also keen to retire early (at age 60) and are quite willing to take on additional risk if this assists in them achieving their lifestyle goals faster. Two years ago, Mary received a $200,000 inheritance from her late father. They invested $160,000 of the inheri tance in a Government of Canada bond which pays annual interest of $5,000. They also con tributed $5,500 to a TSFA (Tax Free Savings Account) account and $14,500 to Mary's RRSP. The balance of the inheritance, $20,000, was invested a junior mining stock which was recom mended by Austin's co-worker who teaches geology at his college. Austin is planning to sell the stock as it has risen from $3.00 per share when he bought it to $6.00 per share currently. According to the latest statements from their brokerage firm, the TSFA has a market value of $5,800 and Mary's RRSP has a market value of $15,250 Both Austin and Mary have disability insurance and health care insurance through their em ployers but neither has a group life insurance plan. With a second child on the way they are wondering if they should purchase life insurance and if so, what amount will they need and the cost. The couple estimates that if one of them should die, the family would require 15 years of living expenses (see Family-Need Method). They also estimate the following: 1. Fu neral and Burial expenses $10,000, 2. Final income taxes full year of taxes, 3. Estate pro bate cost $15,000, 4. Children's education costs $5,000/year for 15 years each. Both Mary and Austin are smokers Mary and Austin Smith have been married for 5 years and have a 4 year old daughter named Lindsay. Mary is expecting her second child in a few months. Mary and Austin are starting to think about their future with the aim of implementing their short and long term lifestyle goals and financial plans. Mary and Austin are both aged 30 For their immediate future they have decided they want to purchase a new house and a new car. The house they want has a value of $800,000 and they are very excited as both Mary and Austin have never owned a home before. They would also like to buy a new BMW automobile with a retail price of $80,000, however they are unsure whether to purchase the car outright or borrow in order to obtain the car. The dealer financing rate is 8.75%. They expect to travel approximately 30,000 km per year Austin works as a college instructor and earns $100,000 gross income ($75,384 after tax), while Mary works for a local small manufacturing business as its chief accountant earning $125,000 gross income (S89,322 after tax). Mary is planning to work full time after the new baby is born but they will have to hire a nanny to replace their current daycare arrange ments. The nanny will not live with them and will cost $2,000 per month vs the $1,000 per month they are currently paying for daycare They enjoy taking holidays and plan to have two holidays each year to the value of $5,000 each. Mary and Austin are also keen to retire early (at age 60) and are quite willing to take on additional risk if this assists in them achieving their lifestyle goals faster. Two years ago, Mary received a $200,000 inheritance from her late father. They invested $160,000 of the inheri tance in a Government of Canada bond which pays annual interest of $5,000. They also con tributed $5,500 to a TSFA (Tax Free Savings Account) account and $14,500 to Mary's RRSP. The balance of the inheritance, $20,000, was invested a junior mining stock which was recom mended by Austin's co-worker who teaches geology at his college. Austin is planning to sell the stock as it has risen from $3.00 per share when he bought it to $6.00 per share currently. According to the latest statements from their brokerage firm, the TSFA has a market value of $5,800 and Mary's RRSP has a market value of $15,250 Both Austin and Mary have disability insurance and health care insurance through their em ployers but neither has a group life insurance plan. With a second child on the way they are wondering if they should purchase life insurance and if so, what amount will they need and the cost. The couple estimates that if one of them should die, the family would require 15 years of living expenses (see Family-Need Method). They also estimate the following: 1. Fu neral and Burial expenses $10,000, 2. Final income taxes full year of taxes, 3. Estate pro bate cost $15,000, 4. Children's education costs $5,000/year for 15 years each. Both Mary and Austin are smokers