Sally and Michael Metcalfe are common-law partners have who have lived together for the last six years. They have one son, Philip, and a dog named Daisy. The family lives at 31 Meyer Circle, Markham, On, L3P 4C3. The familys birthdates are: Sally Metcalfe: April 20, 1991 Michael Metcalfe: November 30, 1992 Philip Metcalfe: May 21, 2018 Sally and Michael have provided their most recent Notice of Assessments to you that show that Sally has $125,098 in RRSP carryforward room, while Michael has $69,098 in RRSP carryforward room. The couple has three goals: First, they would like to retire when Sally turns 63. They estimate that they will need $84230 per year in after-tax income (in todays dollars) to live the lifestyle theyd like to in retirement. They are willing to retire later if needed, but want to work no later than Sallys 65th birthday. In addition, they want to ensure that they plan as conservatively as possible for their retirement to ensure that their risk of outliving their resources is minimized. Second, the couple would like to fund 100% of a four-year post-secondary education for Philip. The total cost of the education is expected to be $19490 (in todays dollars) per year. They expect that they will need the money when Philip turns 19 since they will encourage him to take a year off between high school and college or university to travel and learn more about himself. Sally and Michael both did this and were lucky enough to have met one another on that trip. They estimate that a trip like that costs about $21462 today and want to ensure that they have enough money saved to give to Philip when he turns 18 so that he can travel like they did. Sally has a TFSA with $4,887 of cash invested in it that the couple have earmarked for this purpose. She only started contributing to the account last year, and has made $4,800 in contributions so far. The account earns 1% interest and the beneficiary is listed as Sallys estate. In addition, the couple has a savings account where they have saved money that Philip received from relatives for his birthdays and holidays. It currently has $5,000 in cash in it and earns 0.5% interest. They have earmarked this account for his education. Sally earns a gross salary of $103393 as the head of a local colleges private security team. Her salary is indexed to inflation and she gets paid semi-monthly. Michael is a personal banker and makes $73481 gross per year. His income is paid monthly and is indexed to inflation. The couple currently have $5,000 in their joint chequing account. This account earns no interest and is earmarked for their monthly bills and emergencies that may come up. The couple has one automobile, an SUV that is currently worth $10,000. When they purchased it in September 1, 2015, they paid $30,000 for it using a five-year loan, which they finished paying off this past September. They expect that their SUV will have zero value when it is 10 years old. Since Philip will leave home by the time the car needs to be replaced, and the couple would like to reduce their environmental footprint, they do not intend to purchase another car. Sally has a group RRSP which she contributes 5% of her salary to each year. Her employer matches 100% of her contribution up to a maximum of 9% of her salary. Her contributions are made on a monthly basis through payroll deduction on her last paycheque of the month. Sallys group RRSP currently has $103,281 invested in it with an asset allocation of 50% large cap Canadian equities and 50% U.S. equities. Her beneficiary on file is her estate. Michael does not have any retirement savings. The couple own their home, which is currently valued at $1,100,000. As an only child, Michael inherited it from his parents (worth $900,000 at the time) when they died in a tragic car accident on February 1, 2016. At the time of his parents death, Michael and Sally were living in the separate basement apartment that his parents had built for them while they were alive. He and Sally decided to keep the house rather than sell it. The house is owned solely in Michaels name. The couples work schedule, along with Sallys parents help, allows the couple to avoid having to pay for daycare costs for Philip. The couple has the following expenses each month: Housing costs, including utilities of $2175. Food expenses of $1503. Transportation expenses of $1153. Communications (Cable TV, internet, and cell phones) expenses of $623. Personal expenses of $446. Entertainment and Extracurricular Expenses of $1032 The couple also have the following expenses each year: Property taxes of $6993 Travel Expenses of $8718 The couples answers to their investment questionnaire are found below. They expect to pay a 2% annual non-tax-deductible fee in the form of an MER for the mutual funds theyll invest in. Sally has a will that was drafted on October 9, 2011 when she was married to her ex-husband, Randy. Her current will appoints Randy as the estate administrator and beneficiary of her estate, Michaels will was created June 10, 2013 and lists his parents as the beneficiaries of his estate.

Acceptable solutions: If the clients targeted retirement age cannot be achieved, recommend necessary trade-offs (e.g. delaying retirement, saving additional amounts, reducing expenses, or some combination). You must recommend the optimal solution, i.e., the one that minimizes trade-offs. Unacceptable solutions: deficits or surpluses in the cash flow statement Recommendations must address the following: Asset class weightings, rate of return Networth: accounts that should be created and why) Cashflow: how deficits will be covered or surpluses invested Detailed recommendations on how the following goals are to be achieved (including funding strategies, dedicated accounts and an explanation as to why these strategies are optimal) o Retirement goal o Education Goal o Major purchase (Philips travel) o Estate plan identify gaps and how to eliminate them When you are satisfied with your Alternative Plan, click Recommend; this action will make your Alternative Plan the Proposed Plan such that correct reports will be pulled into your submission. Under Client Reports (left hand tool bar), create the following reports for submission: Cover page Table of contents Recommendations (create PDF and upload via Custom Content) Retirement Goal Coverage Proposed Education Goal Coverage Proposed Major Purchase Goal Coverage Proposed Cash flow surplus/deficits (there should be no surpluses or deficits) Proposed FIP508NAA_ZII_Assignment_2234 Page 3 of 4 Version: LEARN@Seneca Rubric Total Marks: 60 Level of Achievement Value (Marks) Did Not Achieve (0) Novice (50%) Competent (75%) Proficient (100%) Cover Page: Client Names Spelled Correctly 1 Advisor Name and Contact Details 1 Table of Contents 1 Recommendations: Asset Allocation weightings, investor profile explained in sentence form 5 Networth accounts to be opened and rationale in sentence form 5 Cashflow identify how surpluses will be invested and/or how deficits will be eliminated (general only; additional details provided under each goal) 5 Retirement goal retirement date, required income, savings strategies, including amounts, accounts and rationale in sentence form 5 University education objectives, required savings, savings strategies, including amounts, accounts and rationale in sentence form 5 FIP508NAA_ZII_Assignment_2234 Page 4 of 4 Version: LEARN@Seneca Pre-University trip objectives, required savings strategies, including amounts, accounts and rationale ins sentence form 5 Estate identify gaps, recommended solutions and rationale in sentence form 5 Tone motivates client to implement recommendations 2 Cashflow Surplus/Deficit - Proposed No surplus or deficits 5 Retirement Goal Coverage All goals are fully funded within recommended timelines, given client resources. Figures are consistent with those in recommendations write-up 5 Education Goal Coverage 5 Pre-University Trip Coverage 5 Feedback: Criteria: Did not achieve: Missing or significant numerical errors such that plan recommendations cannot be implemented. Novice: Significant numerical or grammatical errors. Recommendations inappropriate or unachievable, given client resources. Competent: Minimal numeric/grammatical errors. Recommendations are acceptable, but not optimal. Proficient: Recommendations are optimal, or trade-offs are reasonable and clearly explained if optimal goals cannot be achieved, given client's resources. Numbers support recommendations.