Case #3: Cashflow Josephine, a CFP professional, is meeting Alex, age 22, for the first time....

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Case #3: Cashflow Josephine, a CFP professional, is meeting Alex, age 22, for the first time. Alex works as an Aviation Technician for WingSPAN Corp. His parents passed away from a motorboating accident when he was four years of age. In the aftermath, Alex inherited the family home, which he owns outright and in sole name. After deductions, Alex's monthly take home pay is $11,500. He would like to retire at age 65 and believes he has a life expectancy of 90. Alex informs Josephine that he wants to purchase a vacation property in Truth or Consequences, a city he visits frequently in New Mexico. The property will cost him CDN $145,000. He also mentions that he will not make the purchase until he is able to pay for it outright. Below is list of Alex's regular expenses: RSP contributions: $2,200 per month Utilities: $300 month Clothing: $250 month Meals and Entertainment: $2,000 month Property taxes: $4,800 per year Vehicle payment: $500 per month Vehicle Insurance: $1,800 per year Food: $650 per month Cell phone: $110 per month New Mexico trips: 3 per year at $7,500 each Alex currently has $34,000 in his RSP which is his primary retirement savings vehicle. He also owns a non-registered savings account valued at $38,000 (ACB $52,000). The non-registered account is earmarked for his vacation property goal. His KYC form indicates that Alex has a conservative risk tolerance and that his current asset mix is consistent with this assessment. Based on the asset mix and projected inflation rate, an assumption of a 3% real return, compounded monthly has been projected for both of his portfolio's. Alex also mentions that a Robo Advisor at another bank recommended that he invest more aggressively to benefit from higher expected returns. Alex has asked Josephine for her opinion. Case #3: Cashflow Josephine, a CFP professional, is meeting Alex, age 22, for the first time. Alex works as an Aviation Technician for WingSPAN Corp. His parents passed away from a motorboating accident when he was four years of age. In the aftermath, Alex inherited the family home, which he owns outright and in sole name. After deductions, Alex's monthly take home pay is $11,500. He would like to retire at age 65 and believes he has a life expectancy of 90. Alex informs Josephine that he wants to purchase a vacation property in Truth or Consequences, a city he visits frequently in New Mexico. The property will cost him CDN $145,000. He also mentions that he will not make the purchase until he is able to pay for it outright. Below is list of Alex's regular expenses: RSP contributions: $2,200 per month Utilities: $300 month Clothing: $250 month Meals and Entertainment: $2,000 month Property taxes: $4,800 per year Vehicle payment: $500 per month Vehicle Insurance: $1,800 per year Food: $650 per month Cell phone: $110 per month New Mexico trips: 3 per year at $7,500 each Alex currently has $34,000 in his RSP which is his primary retirement savings vehicle. He also owns a non-registered savings account valued at $38,000 (ACB $52,000). The non-registered account is earmarked for his vacation property goal. His KYC form indicates that Alex has a conservative risk tolerance and that his current asset mix is consistent with this assessment. Based on the asset mix and projected inflation rate, an assumption of a 3% real return, compounded monthly has been projected for both of his portfolio's. Alex also mentions that a Robo Advisor at another bank recommended that he invest more aggressively to benefit from higher expected returns. Alex has asked Josephine for her opinion.