On October 31, 2022, the Brown's Assets included: - Principal residence-This asset is in both Betty's and Bill's name. The house is currently valued at $850,000 (purchased 12 years ago for $700,000 ). - Joint Bank Account-The Brown's have a joint bank account (that is in both of their names) totalling $18,000 in cash. This account pays an interest rate of 0% on cash. Bill's RRSP s is valued at $25,000. Bill is a very conservative investor and only hold short-term Treasury bills in his RRSP. This account has earned 1.5% over the past year There is no named beneficiary on this account. - Betty's RRSPs is valued at \$225,000. Betty likes to be aggressive with her RRSPs investments. All of Betty's RRSP investments are invested in shares in the car manufacturer Tesla Inc. Unfortunately. Betty's RRSP declined 12.4% in 2021 as the shares of Tesla did not perform well in 2021. Tesla does not pay dividends to its shareholders. Bill is the named beneficiary on this account. - Betty also has a Locked-in RRSP account with a total of $115,000 in investments. This account was opened by Betty in 2005 when she transferred over the money from her pension plan at her former employer. This account only holds cash and earns no interest. Bill is the named beneficiary on this account. Joint Non-Registered Investment Account-This account holds a jointly own, nonredeemable GIC valued at $145,000 at the bank. This GIC is very safe and earns interest at a rate of 1.5% per year. This GIC matures in 2 months. Bill expects the interest rates on GICs to increase each year for the next 4 years. - Inherited Corporate Bond in Bill s name, with a maturity value of \$25.000. Last month Bill's great uncle passed away. Bill's uncle left him a 10-year corporate bond, with a coupon rate of 3% interest per year. After doing some enquires with his uncle's investment advisor, Bill determined that his uncle bought this bond at its face value of $25,000 when it was initially issued three years ago. Today, the bond is valued $28,500. The current interest rate on new bonds is 2.25%. ILABILITIES The Smith's have 2 outstanding Liabilities as at October 31, 2022: - VISA Balance: $28,000 (at 21.3% interest /year) - Line of Credit (secured against the house: $110.000 (at 12% interest/year) PART B - Regarding their investment accounts, Betty asks you to recommend investment strategres for improving the yield on all of the Brown's investment accounts. ART O Is there a need to create a family budget? Why? PART D - Debt management. What debt needs to be paid off immediately? Why? What debt needs to be paid off by retirement date? On October 31, 2022, the Brown's Assets included: - Principal residence-This asset is in both Betty's and Bill's name. The house is currently valued at $850,000 (purchased 12 years ago for $700,000 ). - Joint Bank Account-The Brown's have a joint bank account (that is in both of their names) totalling $18,000 in cash. This account pays an interest rate of 0% on cash. Bill's RRSP s is valued at $25,000. Bill is a very conservative investor and only hold short-term Treasury bills in his RRSP. This account has earned 1.5% over the past year There is no named beneficiary on this account. - Betty's RRSPs is valued at \$225,000. Betty likes to be aggressive with her RRSPs investments. All of Betty's RRSP investments are invested in shares in the car manufacturer Tesla Inc. Unfortunately. Betty's RRSP declined 12.4% in 2021 as the shares of Tesla did not perform well in 2021. Tesla does not pay dividends to its shareholders. Bill is the named beneficiary on this account. - Betty also has a Locked-in RRSP account with a total of $115,000 in investments. This account was opened by Betty in 2005 when she transferred over the money from her pension plan at her former employer. This account only holds cash and earns no interest. Bill is the named beneficiary on this account. Joint Non-Registered Investment Account-This account holds a jointly own, nonredeemable GIC valued at $145,000 at the bank. This GIC is very safe and earns interest at a rate of 1.5% per year. This GIC matures in 2 months. Bill expects the interest rates on GICs to increase each year for the next 4 years. - Inherited Corporate Bond in Bill s name, with a maturity value of \$25.000. Last month Bill's great uncle passed away. Bill's uncle left him a 10-year corporate bond, with a coupon rate of 3% interest per year. After doing some enquires with his uncle's investment advisor, Bill determined that his uncle bought this bond at its face value of $25,000 when it was initially issued three years ago. Today, the bond is valued $28,500. The current interest rate on new bonds is 2.25%. ILABILITIES The Smith's have 2 outstanding Liabilities as at October 31, 2022: - VISA Balance: $28,000 (at 21.3% interest /year) - Line of Credit (secured against the house: $110.000 (at 12% interest/year) PART B - Regarding their investment accounts, Betty asks you to recommend investment strategres for improving the yield on all of the Brown's investment accounts. ART O Is there a need to create a family budget? Why? PART D - Debt management. What debt needs to be paid off immediately? Why? What debt needs to be paid off by retirement date