values of between $1.50 and $2.25 a share. None of the companies that he owns shares in have paid any dividends, but Peter estimates the total value of the shares he owns has gone up about 10% in the last year.

It is the intention of Lois and Peter to pay for their sons college or university education, if Brian and Stewie choose to go to those levels of post-secondary education.

Lois and Peter plan to work until they are 65 years old, then they would like to retire. If she continues to work with the Calgary Board of Education until retirement, Loiss pension will be paying her about $51,000 a year (gross- before tax). She plans to start receiving her Canada Pension Plan (CPP) and her Old Age Security (OAS) payments from the federal government when she reaches age 65. She has no idea of what her RRSP will be worth by the time she retires but, when she set it up 5 years ago; she hoped that it would be worth at least $300,000 by age 65.

If Peter stays with The City until he retires, his employer pension income is estimated to pay him about $38,000 a year (gross-before tax). Other retirement income will consist of whatever income he can generate from his RRSP and from his CPP and OAS payments, which he plans to begin receiving when he turns 65. Peter is starting to get concerned about how much money he will actually be able to build into his RRSP by the time he reaches age 65 but, like his wife, originally thought he could have about $300,000 in his RRSP by the time he hits age 65.

When they do retire, Lois and Peter would like to spend at least 3 months each winter in either Arizona or Mexico. With this being part of their plan, they believe they will need to have a joint (combined) gross-annual income, at retirement, of at least $125,000 per year.

Lois and Peter are not good at saving money, and even worse at knowing where the money goes. They use their credit cards to buy almost everything so they can build-up the Air Miles and other travel-points to take vacations on. Some months they pay large amounts of money against their credit card balances, other months they make only the minimum payments.

Your Assignment

1) Using the concept that is contained in Exhibit 2 3 from the course textbook (a copy of which is attached at the back), create a joint personal balance sheet as at Dec. 31, 2019 and provide your conclusions about what you see in their balance sheet. (5 marks for the balance sheet, and 5 marks for your commentary)

2) Using the concept that is contained in Exhibit 2 4 from the course textbook (a copy of which is attached at the back) create a joint cash-flow statement as at Dec. 31, 2019 and provide your conclusions about what that cash-flow statement seems to indicate. (5 marks for the cash flow statement and 5 marks for the commentary)

Evaluate their risk-management situation (their use of insurance products to protect various aspects of their lives). There are some risk-management needs that are being met, and do not require your focus. There are other risk-management needs that do require your attention, and recommendations. (6 marks)

4) Examine their investment portfolios (what each has in their RRSPs) and make some recommendations about the types of investments they have and the risks they need to be aware of, by continuing to invest in those types of investments. (6 marks)

5) Comment on Loiss and Peters current tax strategies and make any recommendations you think are appropriate. Some topics are not strategies, such as their employer taking funds from their pay cheques to apply against tax on their incomes. There are some strategies that do need your attention and recommendations. (6 marks)

6) From what you have concluded from the value of their investment portfolios (RRSPs) together with the other sources of income in their retirement what, in your opinion, is the likelihood that the couple can achieve the goals they have, with their respective RRSPs and other sources of retirement income, so that they can, together, have retirement income of $125,000 per year. (8 marks)

7) Discuss how they are using, and managing, their consumer credit and make recommendations. (5 marks)

8) Provide your comments and recommendations about the intention that the couple has to pay for their sons post-secondary education. (4 marks)