im's & Elaine's goals is to retire by the time Jim turns 65 years old. They want to ensure that they have $80,000 a year for their retirement. Also, they would like to have sufficient funds to support their children, Amanda's, Daniel's, and Frank's education,

In order to accomplish their goals, they need to have an understanding and recognize their expenses and set up a reasonable budget to control their spendings. Currently, their expenses are higher than their income as they are only managing the minimum payment and/or interests on their credit cards and/or line of credit. Jim & Elaine need to prioritize their spendings and cut down on unnecessary expenses to enable more cash flow as they are currently deficiting in cash flow. Once their spending is controlled, they will be able to use the cash flow to support their debt loads, increase their savings for children's education, and invest for their retirement. In addition, they will need to set up RESP as they would like to support their children's education.

Jim & Elaine will need to prioritize their spending habits. They are lucky that they have approximately 18 years to control their spending before their retirement. Their estate planning & legal aspects are categorized as moderate in priority as they only need to update their wills and rearrange their finances in a fair share of wealth distribution. However, the financial management, investment management, insurance & risk management, and retirement planning are in high priority in order to meet their goal. However, they are at a minimum risk as interest rates are slowly dropping due to the economy changing. It's a good thing that Jim & Elaine have brought this attention to themselves in order to meet their goals in a timely manner.

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Jim and Elaine Smith Cash Flow Statement For the year ending December 31, 2021 Cash Inflows Net take home pay - Jim Net Take home pay - Elaine Total Cash Inflow Cash Outflow Non Discretionary Expenses Annual 88,414 78,240 166,654 Household expenses Insurance Utilities 6,000 3,200 6,200 Heating Property Taxes 2,400 4,800 House maintenance 3,500 Groceries 8,200 Spcial Education - Frank 8,400 Car Leases 20,400 Car maintenance and insurance 3,600 Clothing 3,100 Total Non Discretionary 69,800 Discretionary vacation 4,000 Club memberships 1,000 Restaurants 8,000 Summer camp 5,000 extra curricular for kids 8,000 Sporting events 450 Entertainment 4,000 support for Frank 6,000 Miscellaneous (not known) 3,295 Total Discretionary 39,745 Debt Payments Mortgage 23,760 RRSP Loan 3,600 Student Loan 6,960 Visa (min payments only) 2.280 Mastercard (min payment) 16,200 Line of Credit (interest only) 1,204 total Debt Repayments 54,004 Savings Jim RRSP contributions 4,200 Elaine RRSP contributions 4,200 Total Savings 8,400 Total Cash Outflow 171,949 Net Surplus/deficit) (5.295) Jim and Elaine Smith Cash Flow Statement For the year ending December 31, 2021 Cash Inflows Net take home pay - Jim Net Take home pay - Elaine Total Cash Inflow Cash Outflow Non Discretionary Expenses Annual 88,414 78,240 166,654 Household expenses Insurance Utilities 6,000 3,200 6,200 Heating Property Taxes 2,400 4,800 House maintenance 3,500 Groceries 8,200 Spcial Education - Frank 8,400 Car Leases 20,400 Car maintenance and insurance 3,600 Clothing 3,100 Total Non Discretionary 69,800 Discretionary vacation 4,000 Club memberships 1,000 Restaurants 8,000 Summer camp 5,000 extra curricular for kids 8,000 Sporting events 450 Entertainment 4,000 support for Frank 6,000 Miscellaneous (not known) 3,295 Total Discretionary 39,745 Debt Payments Mortgage 23,760 RRSP Loan 3,600 Student Loan 6,960 Visa (min payments only) 2.280 Mastercard (min payment) 16,200 Line of Credit (interest only) 1,204 total Debt Repayments 54,004 Savings Jim RRSP contributions 4,200 Elaine RRSP contributions 4,200 Total Savings 8,400 Total Cash Outflow 171,949 Net Surplus/deficit) (5.295)