Page view AN Don and Jean Assignment Instructions Part 1: Goals, Cash Flow and Net Worth Note: This report should be professionally completed, as if you were to presenting it Don and Jean. Use Word/Excel or equivalent in preparing the report. 1. Develop a minimum of four financial goals for Don and Jean. These goals should be "SMART" in nature, and also prioritized. 2. Create a Cash Flow statement for Don and Jean. 3. Create a Net Worth statement for Don and Jean Part 2: Education, Insurance and a realistic Budget Note: This report should be professionally completed, as if you were to presenting it Don and Jean. Use Word/Excel or equivalent in preparing the report, however, Part 5 (CNA) must be completed using the one-page CNA analysis worksheet. 4. Complete and Educational Needs Analysis for Don and Jean, clearly indicating the amount they are required to invest monthly to meet their goal. 5. Complete a Capital Needs Analysis (CNA) for Don and Jean 6. Complete a Disability Needs Analysis (DNA) for Don and Jean 7. Complete a Budget (monthly basis) for Don and Jean. Ensure this Budget reflects the implications of any saving, investment and insurance recommendations you have made during your review. Notes: I CAUsers/16476/Downloads/Don%20and%20Jean.pdf With Don and Jean.pdf Don and Jean.pd + I D Page view All Read aloud Add text V Draw Highlight Case Study: Don and Jean the time Jerry turns 18. At this point in time, they have not set aside any money for education Don is 37 and works as a senior manager at a local company. He cams $93,000 annually, and his take home pay, after deductions is $4800 monthly. Donis happily married to Jean. They have two children, Jerry (age 9) and Patty (age 7). Jean, also 37, works full time, earning $61,000 annually. Jean's 'take home pay, after deductions, is $3200 each month. They own a home in Waterloo, valued at $425,000. Their mortgage is with the TD Bank, and the current balance of their mortgage is $279,000. The monthly mortgage payments are $1200. The property taxes on their home are $300 monthly, with homeowner's insurance costing $100 monthly. In a typical year, they spend an average of $350 monthly on home maintenance In terms of retirement, they would ideally like to retire when Don is 65, although they don't know whether this is financially feasible. They feel a retirement income of $70,000 ("gross") would be required. Don and lean want to ensure their retirement income will last until they reach age 95. Inflation is expected to be 3% throughout their retirement period. Don's current employer has ne pension plan. Jean has a Defined Benefit plan, based on a 'factor' of 1%, and average of best three years of service Jean currently has 12 years of service in the plan. The normal retirement ne for her pension plan is age 65, and the plan is indexed to inflation ence retirement begins. Don has a "Locked-In RRSP"Valued at $6500 The monthly, bundled cost of their home phone, cell phone, internet and cable amounts to $320. The bills they receive each month for wateratural gas and "electric/hydro' are $250 and $240 respuetively, Their current RRSP balances are $37.000 for Dow and $12.000 for Jem. Prior to having children, they had been contributing significant amount each month to their RRSPs, however, since the kids were here, they have reduced the monthly RRSP contributions to S100 monthly As a growing family of four, they spend 5600 cach month on groceries. Patty and Jerry are part of the 'before and after school daycare program at their school. This service costs $860 each month. Music lessons and minor sports cost $200 monthly Both Don and Jean will be eligible for the maximum CPP retirement benefits they both their present income un retirement. To be conservative, Don and Jean de not want OAS payments included as part of their retirement income stream In terms of their vehicles, they own at Honda Accord Valued at $19.500, and a Chrysler Van, valued at $10,000. They have a 58000 loan on the Van, The loan payment on the van is $500 monthly, and insurance payments $100 monthly per vehicle. On average, vehicle maintenance and repairs amount to $100 per month. Total gasoline costs for both vehicles are $400 monthly In terms the premature death of either Don or Jean, both agree that they would like to have sufficient life insurance to ensure all debt is paid off, and provide a target income of $100,000 to the survivors until Patty reaches the age of 18. Assume all asset and debt balances are as of December 31 of the previous year. Don and Jcan enjoy entertainment, dining out and annual holidays. Each month, they spend approximately $250 on entertainment (thentre and sporting events), $400 on restaurant dining, and set $200 aside for their annual vacation. They also spend $200 monthly on recreation (sports and gym memberships), and $100 monthly on beer, spirits and wine! On a monthly basis, they spend $300 total on clothing, S40 on life insurance ($100k Don, and $100k Jean), and S80 on personal pharmacy items. Don and Jean estimate they spend an additional $480 per month on miscellaneous items. Don and Jean recognize the importance of post-secondary education for their children, and would like to accumulate $15.000 to assist with education costs by Page view AN Don and Jean Assignment Instructions Part 1: Goals, Cash Flow and Net Worth Note: This report should be professionally completed, as if you were to presenting it Don and Jean. Use Word/Excel or equivalent in preparing the report. 1. Develop a minimum of four financial goals for Don and Jean. These goals should be "SMART" in nature, and also prioritized. 2. Create a Cash Flow statement for Don and Jean. 3. Create a Net Worth statement for Don and Jean Part 2: Education, Insurance and a realistic Budget Note: This report should be professionally completed, as if you were to presenting it Don and Jean. Use Word/Excel or equivalent in preparing the report, however, Part 5 (CNA) must be completed using the one-page CNA analysis worksheet. 4. Complete and Educational Needs Analysis for Don and Jean, clearly indicating the amount they are required to invest monthly to meet their goal. 5. Complete a Capital Needs Analysis (CNA) for Don and Jean 6. Complete a Disability Needs Analysis (DNA) for Don and Jean 7. Complete a Budget (monthly basis) for Don and Jean. Ensure this Budget reflects the implications of any saving, investment and insurance recommendations you have made during your review. Notes: I CAUsers/16476/Downloads/Don%20and%20Jean.pdf With Don and Jean.pdf Don and Jean.pd + I D Page view All Read aloud Add text V Draw Highlight Case Study: Don and Jean the time Jerry turns 18. At this point in time, they have not set aside any money for education Don is 37 and works as a senior manager at a local company. He cams $93,000 annually, and his take home pay, after deductions is $4800 monthly. Donis happily married to Jean. They have two children, Jerry (age 9) and Patty (age 7). Jean, also 37, works full time, earning $61,000 annually. Jean's 'take home pay, after deductions, is $3200 each month. They own a home in Waterloo, valued at $425,000. Their mortgage is with the TD Bank, and the current balance of their mortgage is $279,000. The monthly mortgage payments are $1200. The property taxes on their home are $300 monthly, with homeowner's insurance costing $100 monthly. In a typical year, they spend an average of $350 monthly on home maintenance In terms of retirement, they would ideally like to retire when Don is 65, although they don't know whether this is financially feasible. They feel a retirement income of $70,000 ("gross") would be required. Don and lean want to ensure their retirement income will last until they reach age 95. Inflation is expected to be 3% throughout their retirement period. Don's current employer has ne pension plan. Jean has a Defined Benefit plan, based on a 'factor' of 1%, and average of best three years of service Jean currently has 12 years of service in the plan. The normal retirement ne for her pension plan is age 65, and the plan is indexed to inflation ence retirement begins. Don has a "Locked-In RRSP"Valued at $6500 The monthly, bundled cost of their home phone, cell phone, internet and cable amounts to $320. The bills they receive each month for wateratural gas and "electric/hydro' are $250 and $240 respuetively, Their current RRSP balances are $37.000 for Dow and $12.000 for Jem. Prior to having children, they had been contributing significant amount each month to their RRSPs, however, since the kids were here, they have reduced the monthly RRSP contributions to S100 monthly As a growing family of four, they spend 5600 cach month on groceries. Patty and Jerry are part of the 'before and after school daycare program at their school. This service costs $860 each month. Music lessons and minor sports cost $200 monthly Both Don and Jean will be eligible for the maximum CPP retirement benefits they both their present income un retirement. To be conservative, Don and Jean de not want OAS payments included as part of their retirement income stream In terms of their vehicles, they own at Honda Accord Valued at $19.500, and a Chrysler Van, valued at $10,000. They have a 58000 loan on the Van, The loan payment on the van is $500 monthly, and insurance payments $100 monthly per vehicle. On average, vehicle maintenance and repairs amount to $100 per month. Total gasoline costs for both vehicles are $400 monthly In terms the premature death of either Don or Jean, both agree that they would like to have sufficient life insurance to ensure all debt is paid off, and provide a target income of $100,000 to the survivors until Patty reaches the age of 18. Assume all asset and debt balances are as of December 31 of the previous year. Don and Jcan enjoy entertainment, dining out and annual holidays. Each month, they spend approximately $250 on entertainment (thentre and sporting events), $400 on restaurant dining, and set $200 aside for their annual vacation. They also spend $200 monthly on recreation (sports and gym memberships), and $100 monthly on beer, spirits and wine! On a monthly basis, they spend $300 total on clothing, S40 on life insurance ($100k Don, and $100k Jean), and S80 on personal pharmacy items. Don and Jean estimate they spend an additional $480 per month on miscellaneous items. Don and Jean recognize the importance of post-secondary education for their children, and would like to accumulate $15.000 to assist with education costs by