Case Study:

Shaheen (aged 28) and Tyson (age 27) Grange have been married for five years. They have an eleven month old daughter named Mischa. They live in a suburb outside of Toronto.

Shaheen will be returning to her work as a police officer in one month when her maternity leave ends. She earns an annual salary of $100,925. Tyson works as a social worker at the local Children's Aid Society and earns $58,750 per year.

The couple have two goals. Their primary goal is to ensure they can fund Mischa's post-secondary education costs at an annual cost of $15,000 per year for four years, starting when Mischa is 18 years old. Both Shaheen and Tyson have shared with you how proud they felt when they graduated from university since they were both the first in their families to attend post-secondary education. They want Mischa to have the same opportunities and pride that education has provided them. You have calculated that the couple will need to save $723 per month to fund their daughter's education.

The couple's second goal is to retire with an annual after-tax income of $70,000 when Shaheen turns 60 years old. During your discovery meeting, you discovered that the couple envisions their retirement being split between international travel to experience different cultures, hanging out with friends at a local seniors' centre, and spending as much time as possible with their grandchildren. You have calculated that the pensions the couple will receive, including their CPP and OAS pensions, and Shaheen's employment pension, they will be able to cover their retirement expenses.

The couple's most recent Notice of Assessments show that Shaheen has $58,976 in RRSP carryforward room, while Tyson has $35,258 in RRSP carryforward room. Shaheen's pension adjustment averages about $14,000 per year. Neither Shaheen nor Tyson have ever contributed to a TFSA.

The couple own their home, which is currently valued at $780,000. They also own two cars, one worth $20,000 and the other worth $10,000. Both are fully paid off. The couple have a mortgage of $320,000 to which they pay $2,000 per month towards. The couple have been saving any excess cash they have in to a joint non-registered saving account that pays 1% interest. The account currently has $30,850 in it. Based on the couple's bills, they have the following monthly expenses:

• Utilities of $500
• Insurance of $600
• Food expenses of $900
• Transportation expenses of $500
• Communications (Cable TV, internet, and cell phones) expenses of $500
• Entertainment and Extracurricular Expenses of $500

The couple also have the following expenses each year:

• Property taxes of $6,000
• Travel Expenses of $6,000

With Shaheen returning to work, the couple have enrolled Mischa in daycare at a cost of $1,850 per month.

Shaheen receives substantial employment benefits through her work, including life and disability insurance, as well as health and dental benefits. While the couple know that Shaheen's work is quite safe, they have planned for the possibility of a future where she dies by obtaining a term-20 joint-first-to-die life insurance policy with a death benefit of $2.5 million.

During your discovery meeting, you identified that the couple have not drafted a will or power of attorney. If anything were to happen to both of them, they would like Tyson's sister, Lauren, to become Mischa's legal guardian.

Assume that you have met the clients described in the case study and completed your discovery process with them. Based on the information you collected, prepare the presentation that you would present to the clients during their recommendation meeting. You do not need to provide investment recommendations to the client. In other words, you do not need to provide them with a recommended asset allocation or specific investment product recommendations (such as mutual funds, ETFs, etc.).

Your presentation should be no longer than 15 minutes and use the concepts that you have learned in class to effectively and efficiently engage and motivate the clients to enact your recommendations.