You have been approached by Martin Jacobs, the CEO of a privately owned Ontario-based technology company, and his wife Jessica, an Office Manager at another local IT company. Jessica and Martin met five years ago at a technology conference. They have one child together, Michael. Martin has two adult children from his prior marriage, Robert and Krystal. Martin's ex-spouse, Katherine Roberts, is a free-lance editor and writer. Martin is known to be assertive and outspoken; some people even say he is intimidating. He is a sophisticated investor and has been day trading on the stock market for a long time. Martin wants to retire when he turns age 65. Martin enjoys his current and he does not want a significant drop when he does retire. Martin enjoys his sports car and is an avid golfer. With a young family, Martin wants to ensure that he maintains 80% of his income throughout his retirement. Martin completed his MBA at a major Canadian university and education is extremely important to him. Martin has mentioned that he wants to begin to put away funds for Michael's post-secondary education including graduate school. He wants to ensure that Michael has all the opportunities available that he did not have when he was growing up. Martin is interested in ensuring he is taking advantage of all tax efficiencies. Martin has a family history of heart issues and he does work in a high stress environment. He wants to ensure that Jessica and Michael are looked after if he were to pass away suddenly. He is interested in discussing what kind of tools are available to him to protect his family. Jessica and Martin have a family dog, Zeke, a Boxer mix. It is important to them that their dog is well looked after. With high-pressure jobs and demanding hours, Martin and Jessica are a hard-working couple. In order to maintain that work/life balance, they like to play as hard as they work. They have a date night at a fancy restaurant one to two times per month and they take three vacations per year. Martin and Jessica both place a strong emphasis on education and Michael is attending a Montessori school as his daycare/pre-school. He is a very happy child and loves to play with LEGO blocks. Despite the divorce, Martin does maintain a good relationship with his two adult children - Robert and Krystal and he wants to ensure that he can leave something for both. Because there is some tension between his adult children and his spouse, Martin wants to look at any options that will bypass his will and can be distributed directly to Robert and Krystal. Robert is a Computer Programmer and is now working for a major international technology firm. He completed his undergraduate studies and masters at the same major Canadian university as his father. Krystal is a free-lance writer, blogger and social media influencer. She is currently enrolled in her first year in the top Journalism post-graduate program in the country. Katherine met Martin through mutual friends from university. They were married for over 20 year's but they chose to divorce once Robert and Krystal had completed high school. 

Questions:

 a. Identify any Retirement planning issues that are currently in force or may arise in the future. 

b. Can the principals meet their retirement goals with their current structure? Use TVM to provide your response. Show your calculations as support. 

Answer rating: 100% (QA)

Retirement Planning Issues for Martin and Jessica Current Maintaining 80 of income during retirement This goal might be ambitious considering a potential drop in Martins highrisk day trading activitie... View the full answer