The date is November 5th, 2021. A recently married couple (Anne and John Smith) just graduated from school and they both have started full-time well-paying jobs. They are both 26 years old. Both do not have any group benefits with their employers. They have come to you as a Financial Planner for advice. Anne earns $70,000 per year, after taxes her take home pay is $51,000 per year. John earns $65,000 per year, after taxes his take home pay is $48,000 per year.

During your interview you have discovered the following information about your prospects.

The couple owes $30,500 in student loans and want to pay within 3 years. They have the following list of shared expenses:

• Rent = $1,800 per month
• Food = $700 per month
• Internet / Cell phone = $300 per month
• Entertainment = $200 per month
• Student Loan Bills = $500 per month

• Car Fuel and Insurance = $600
• Subscription Service = $80 per month
• Charity = $100 per month
• Gifts = $200 Per month
• Car Lease Payments (Anne) = $250 per month

• Truck Lease Payments (John) = $300 per month

Anne and John would like to buy a house in 5 years and ensure they saved enough to have a %20 down payment on a $800,000 property. Annes Parents have gifted them $50,000 to help with their future down payment. Anne has 20,000 of unused RRSP contribution and John has $18,000. This was determined upon reviewing their 2020 notice of assessment.

Your answer must be typewritten; times new roman 12 point font; double spaced; and have 1 inch margins. Presentation must be professional, with proper headings, grammar, and structure. Please include a title page with your name, student ID, date, and class code. If these format guidelines are not followed, marks will be deducted from the reports grade.

Note: any calculations MUST be included in the exhibits section.

This case is worth 5% of your final mark.

Answer the following Questions regarding the case above.

1. Take the information about the couples goals and turn them into SMART Goals. Do this for all 3 goals. (3 marks)

2. Create a cashflow statement to show the couples total inflows and outflows. Determine if they have a monthly surplus or deficit. (5 marks)

3. The couple have no saving set aside for an emergency fund. Calculate an appropriate amount they should set aside as an emergency fund and support your reasoning. (2 marks)

4. The couple are currently paying $500 per month towards their student debt. The total amount of debt is $30,500 @ 3% interest compounded Annually. Based on their current payment plan, how long will it take for them to repay the loan. (Please show calculations) (2 marks)

5. If the couple want to pay off their student loans in 3 years, what will they have to increase their monthly payments to achieve this goal. (Show calculations) (2 marks)

6. Based on their home purchase price of $800,000. With the help of Annes Parents, what will the couple have to save each month to achieve a 20% down payment? (Show calculations) (3 marks)

7. Based on the couples current life stage and situation, suggest what insurance products they should consider and why? (4 marks)

8. Based on the couples current 2020 RRSP contribution room, please determine what each persons new RRSP contribution room will be on their 2021 notice of assessment. (Show calculations) (3 marks)