Shelly and Alan are both 38 years old. They are non-smokers and have 2 young children, Brandon (8) and Ally (6). They have recently switched financial institutions to renew their mortgage and as a special bonus have been offered a free financial plan. The team has met with the couple and collected the following information:

Question:

Identify Shelly and Alans life cycle stage and based on their stage assess strengths, weaknesses, opportunities and threats of their current financial situation using all applicable financial ratios and formulas.

Description Annual Earnings Home Mortgage (not insured) Heat/Hydro/Taxes Cars (2) Car loan Savings Account Shelly's RRSP Alan's RRSP Group life insurance policies Credit card Low interest rate credit card (12%) with a limit of $12,000) General Expenses Assets $550,000 $35,000 $2,500 (joint) $25,000 (contributing $2,000/yr) $40,000 (contributing $4,000/yr) Liabilities Income $145,000 $350,000 $15,000 $5,000 owing Shelly $85M+ Alan $60M *assume an income tax rate of 30% $145,000 Shelly $85M, Alan $60M (spouse is beneficiary for both) Expenses/Payments $1,840/mo $700/mo $450/mo Minimum payment is 5% / mo Groceries/ Drug Store $600/mo Children's activities, travel clothing $8,000/yr Description Annual Earnings Home Mortgage (not insured) Heat/Hydro/Taxes Cars (2) Car loan Savings Account Shelly's RRSP Alan's RRSP Group life insurance policies Credit card Low interest rate credit card (12%) with a limit of $12,000) General Expenses Assets $550,000 $35,000 $2,500 (joint) $25,000 (contributing $2,000/yr) $40,000 (contributing $4,000/yr) Liabilities Income $145,000 $350,000 $15,000 $5,000 owing Shelly $85M+ Alan $60M *assume an income tax rate of 30% $145,000 Shelly $85M, Alan $60M (spouse is beneficiary for both) Expenses/Payments $1,840/mo $700/mo $450/mo Minimum payment is 5% / mo Groceries/ Drug Store $600/mo Children's activities, travel clothing $8,000/yr