Ritu who is 28 and Daniel who is 32 years old, have just welcomed their new, healthy baby boy Liam into this world. They are a happy family, but the financial responsibilities of having a son have sunk in and they need help to figure out what to do to ensure Liam is taken care of should anything happen to them. They called their branch and were connected with the Financial Planner who has met with the couple and collected the following information:

Description	Assets	Liabilities	Income	Expenses/Payments
Annual Earnings			Daniel $75,000/yr +up to $10,000/yr bonus) Ritu $50,000 (currently on mat leave so only receiving half her salary) Couples tax rate 21%
Home	$425,000
Mortgage		$320,000		$1,680/mo
Condo Fees				$400/mo
Property Taxes				$200/mo
Line of Credit ($15,000)		10,000 (used to reno the babys room)		500/mo
Car	$10,000
Student Loans		$20,000		$500/mo
Savings Account	$5,000 (joint)
Daniels RRSP	$25,000 (contributing $2,000/yr)
Ritus RRSP	$15,000 (contributing $1500/yr)
Group life insurance policies			Daniel $75,000 (employee benefit )
Credit card limit of $10,000)		Paid in full monthly		Minimum payment 5% / mo
General Expenses				Groceries $400/mo Personal care/ Baby $150/mo Miscellaneous Expenses (dining out, travel, entertainment $400/mo

Question #1

Assess Ritu and Daniels current financial situation using all applicable financial formulas and ratios. Then complete a SWOT analysis to determine the couples financial strengths, weaknesses, opportunities, and threats. How are they doing financially?