Shyam and Diya Singh are both 54 years old and have been married for 13 years. They have come to talk to you about retirement planning and want help calculating their net worth.

Shyam earns $75,000 and supports both himself and Diya on that income. He has medical and dental coverage (90% paid by the company) but no other benefits. He is concerned about what would happen if he were to suddenly die or otherwise become unable to work.

The couple owns a condominium that is currently valued at $465,000. They have a mortgage of $62,000 at an interest rate of 2.5% on the property, with 3 years remaining on the 5-year term. They also have a line of credit, which they used to finance renovations on their condo. The balance owing is $27,000 at a rate of 3.5%. In addition to their principal residence, they own a cottage valued at $250,000.

Shyam has $85,000 in an RRSP that carries a nominal rate of return of 5%. In addition, Shyam's mother invested $220,000 on his behalf 13 months ago in equal amounts in a laddered GIC portfolio, with maturities from 1-to-4 years. The GICs are earning the following rates: 1 year 3%, 2 years 3.50%, 3 years 4% and 4 years 4.50%. Shyam receives the proceeds of the GICs as cash gifts from his mother as they mature, including the interest in full. He has already received the proceeds of the one-year GIC, plus full interest, and his mother covered the tax liability.

Diya has a defined benefit pension plan that will begin to pay her $24,000 per year for life, starting at age 60. She also opened a TFSA and made a contribution of $15,000 last month.

Q1. Identify the competency statements you need, as a financial planner, to demonstrate your ability to meet the client's needs.

Q2. Identify the knowledge statements you need, as a financial planner, to demonstrate your ability to meet the client's needs.

Scenario 2

Read the scenario below before answering the following questions.

Bob and Tammi Beckham, both age 55, have been married for thirty years and have three children. The couple have managed their money carefully over the years and have put all three children through university. They have no debt other than a mortgage and a secured line of credit. However, they have never opened RRSPs or TFSAs and have very little savings. They have not bothered updating their wills, nor have they appointed powers of attorney.

Tammi has just inherited $1 million from her mother's estate, and the couple has come to you for guidance in creating a financial plan.

Bob is very conservative and does not want to spend money on commissions or investment fees. He thinks all the money should be invested in GICs or a money market fund.

Tammi, on the other hand, loves reading about the market, and thinks that she would be great at picking stocks and playing the market.

Q1. Identify the competency statements you need, as a financial planner, to demonstrate your ability to meet the client's needs.

Q2. Identify the knowledge statements you need, as a financial planner, to demonstrate your ability to meet the client's needs.