50.1K

Verified Solution

Link Copied!

Assume that you have met the clients described in the case study and completed your discovery process with them. Based on the information you collected, prepare the presentation that you would present to the clients during their recommendation meeting. You do not need to provide investment recommendations to the client. In other words, you do not need to provide them with a recommended asset allocation or specific investment product recommendations (such as mutual funds, ETFs, etc.). Your presentation should be no longer than 15 minutes and use the concepts that you have learned in class to effectively and efficiently engage and motivate the clients to enact your recommendations. Record your presentation as if you were presenting virtually to the clients. FACTOR MARKS Recap of Goals 2 Net worth and cash flow 6 Recommendations 20 Action plan 2 Presentation (Engagement & motivational factors) 10 Total marks 40 Case Study: Esme and Matthew Robinson Esme and Matthew (aged 29 and 31, respectively) are married with a 2-year-old son named Tyler. They live in an apartment in Toronto. Esme works as a Software Engineer for a local tech company and earns $101,800. Matthew is a professional musician with a local orchestra and earns $56,240. Daycare costs are $1,850 per month. Esme receives excellent employment benefits through her work, including life and disability insurance, as well as health and dental benefits. While the couple knows that Esmes work is quite secure, they have planned for the possibility of a future where she dies by obtaining a term-20 joint-first-to-die life insurance policy with a death benefit of $2.5 million. If Matthew were to work full-time, his income would increase to 86,000 and monthly daycare costs would be $1,850 per month. During your discovery meeting, you identified that the couple have not drafted a will or power of attorney. If anything were to happen to both of them, they would like Matthews sister, Lauren, to become Tylers legal guardian. The couple have two goals. Their primary goal is to ensure they can fund Tylers post-secondary education costs at an annual cost of $10,000 per year for four years, starting when Tyler is 17. Esme mentioned that she was the first person in her family to attend post-secondary education and wanted her son to have the same opportunity that she had. You have calculated that the couple will need to save $705 per month to fund their daughters education. The couples second goal is to retire with an annual after-tax income of $75,000 when Esme turns 60 years old. During your discovery meeting, you discovered that the couple plans to travel heavily during the first 10 years of their retirement, followed by a period where they will slow down, spending more time with their grandchildren and friends. You have calculated that the pensions the couple will receive, including their CPP and OAS pensions, and Esmes employment pension, will suffice to cover their retirement expenses. The couples most recent Notice of Assessments show that Esme has $58,976 in RRSP carry forward room, while Matthew has $35,258. Esmes pension adjustment averages about $12,000 per year. Neither Esme nor Matthew have ever contributed to a TFSA. The couple rents a large 2-bedroom apartment for which they pay $2,700 monthly. They like living in the area they are in (especially the take-out restaurants), and cannot afford to buy in their neighbourhood, but do worry that they may need more space as Tyler gets older. They also own two cars, one worth $20,000 and the other worth $5,000. Both are fully paid off. The couple have been saving any excess cash they have into a joint non-registered saving account that pays 0.5% interest. The account currently has $32,100 in it. Based on the couples bills, they have the following monthly expenses: Utilities of $300 Insurance of $600 Food expenses of $1,200 Transportation expenses of $500 Communications (Cable TV, internet, and cell phones) expenses of $550 Entertainment and Extracurricular Expenses of $500 The couple also have the following expenses each year: Travel Expenses of $6,000

Answer & Explanation Solved by verified expert

See Answer