Tom and Agnes also attended the Retirement Planning meeting. They said they were too young to start saving for retirement. Retirement seemed hundreds of years away and they wanted to have fun today. They would have plenty of time to save for retirement when they were in their 50 s. The couple have two young children and wish to share whatever assets they will have to the children. The couple have a business and they are concerned about the welfare of their children should anything happen to them e.g. major injury or death.

Briefly outline two disadvantages of Tom and Agness approach

b) Briefly outline to the couple what is required to ensure their wish for their children is fulfilled

c) A financial plan must take into account the possibility of risks such as disability and premature death that may occur. Explain to Tom one main risk they will need to mitigate and eliminate (