Aaron and Tara Smith have requested your help in developing a plan to manage their risk. From your initial meeting, you have gathered the following information. Aaron Smith, age 36, is the owner and manager of a trucking company. He has Schedule C net income of $75,000. Tara Smith, age 36, is a customer service manager with an income of $55,000. Their net worth is $320,000 consisting of $160,000 equity in their home and $160,000 of investments and cash and cash equivalents. Aaron and Tara have been married for 14 years. They plan to retire in 26 years. They have two children,. William and Tyler, and do not plan to have any more children. William, age 14, attends the local public high school and is in the eighth grade. Tyler, age 10, is in the fifth grade at the local grammar school. I FINANCIAL GOALS & CONCERNS:PO;LOK,MLOP;/. Their primary goal, for this engagement, is to develop an appropriate risk management portfolio. Their other goals and concerns are as follows: 1. The Smiths want to provide a standard of living post retirement of 80% of their preretirement earnings. 2. They want to accumulate sufficient assets to send their children to a state university 3. They want to minimize their current income tax liability 4. They want to expand the trucking company 5. They want to be mortgage and debt free at retirement 6. They want to purchase an airplane upon retirement EXTERNAL INFORMATION: 1. Economic information: General inflation is expected to average 3.0% annually for the foreseeable future. Bank lending rates 15-year conforming annual rate mortgages are 5.0% 30-year conforming rate mortgages are 5.5% Any closing costs associated with mortgage refinance are an additional 3% of the amount mortgaged and will be included in the mortgage, or paid directly.