This assignment is supposed to represent a real client scenario for you. Please complete this individually or in a group of 2. .



1. This assignment is supposed to represent a real client scenario for you.  Please complete this individually or in a group of 2. . 

2. Unlike the retirement planning exercise that we completed in class, you must present a formal written report, with formal financial statements.  Please see handouts and materials posted to help with the format of good financial statements.

Your report should include a cover letter to the client, outlining your major findings in the work that you completed and any urgent actions they should take (i.e. if you think they need more life insurance asap, tell them that). Keep in mind that the cover letter cannot include all details however, you want to make sure your client understands the work you did, the extent of your analysis and your key findings and/or recommendations. You can summarize but they need the major outcomes.  Pretend that they will not read entire report, you need to tell them if they will/will not have enough for retirement or key changes they need to make for their estate plan.

For ease of completion, you do not have to index expenses annually and can assume that current cash inflow, will remain constant for big chunks of time (i.e. first 10 years, next 10 years etc).  Effectively, this means you will plan in today’s dollars.  The only increases that will be reflected in your statements are those that are above inflation.  State your assumptions.  This financial plan is marked upon the process you take and ensuring that you tie everything together.  NO two groups should have the same numbers as you will all make slightly different assumptions for the retirement spending.  If you believe some information is missing, state that and make an assumption.  That said, you should not assume the case away.    Be realistic in your assumptions and state all assumptions.

3. Your report should include recommendations and an action plan for the client.  Be sure that they are aligned with the client goals and that you address any specific concerns that they cited.

4. The questions at the end of the case help indicate the expectations for the report.

5. I am willing to assign the class time during the week of March 30th to complete this assignment.  I know that you will be working remotely.  You will need to put forth extra effort if you are working in small groups.

6. Although you may discuss this with other students but all work must be the original. ……All financial plans must be submitted through blackboard where they will be examined for plagiarism.  DON’T DO IT.  This is the last major deliverable.  Do not put your entire program at risk.  Once reported through the plagiarism program, all infractions must be reported and action will be taken.




Introduction & Background

It is early 2019, when Jeff and Jill, ages 52 and 50 respectively, come to you for some help with their financial planning.  Even though they have always been cognizant of their cash flow and always seem to meet their obligations as they come due, they realized that they are now in their “50’s” and decide that they should figure out where they stand.  Jill has always managed the cash flow for the family in a diligent and disciplined manner.  Jill is very much cash based, in order to control their expenses, and allocates cash from each pay to meet their immediate spending needs.  She has found that this has helped her control spending and limit excessive spending, but, has also prevented her from seeing the big picture. They know that they make good money but somehow, they feel that they live paycheque to paycheque.  Jill is not sure if it is due to her cash-based approach or they are in poor financial position.  

As they reflect on turning 50, they look forward optimistically to the future.  As they look back, Jeff and Jill think that their financial position could be better however, they realize that they endured some challenges during their married life which has impacted their financial position today.  Jill and Jeff endured some health issues during the child bearing years, which resulted in significant cash outlays, and Jill was unemployed for over a year when her former employer declared bankruptcy.   They also recently did a much-needed renovation on their home which has resulted in an increase to the FMV of their home to $760,000. Although a little nervous, they look forward to sitting down and assessing where they stand as they look ahead to their next chapter. They are not sure how much their savings, so far, will provide for them in retirement.  They know the DBPP is powerful but do not really understand it and worry because so many of their friends are scraping to save in their RRSPs.  They would like to know how much they will have, if they maintain status quo, and how much you think that they need based upon their retirement goals (which they think are quite simple).

Jill and Jeff have one son, Jack, age 20 who is currently in his second year of post-secondary education at St. Francis Xavier University, in Antigonish, Nova Scotia.  Jack loves his program in Aquatic Resources and can foresee that he will end up relocating to the Maritimes upon graduation.  Ever since he was a little boy, Jack has been obsessed with Marine animals and aquatic life.  He hopes that his unique program will serve him well for a career in the field that he loves most. 

When he was in his early teens, Jack suffered from the chicken pox. It was a severe case . The chicken pox got into his eyes and created eye damage.  He is legally blind in one eye and his vision is compromised in the other eye.  This makes Jack eligible for the Disability tax credit.  An optimist, Jack has managed to overcome this disability for a large part.  He did have a surgery and they believe that his sight will hold constant for up to 20 years.  That said, unless another medical solution comes up, it is believed that Jack will experience rapid vision loss after age 45.

Jill and Jeff are so proud of all Jack has overcome and they miss their only son. They are sad that he is so far away since the visits are few and far between but are gradually adapting to their life as empty nesters.  Growing up, Jack was the centre of their universe and much of their social life circled around his sporting events.  As such, Jeff and Jill are trying to rebuild their own interests for the future. 

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