Case StudyShelly and Alan are both 38 years old. They are non-smokers and have 2 young children,Brandon (8) and Ally (6). They have recently switched financial institutions to renew theirmortgage and as a special bonus have been offered a free financial plan. The team has met with the couple and collected the following information:

Question #1 Identify Shelly and Alans life cycle stage and based on their stage assess strengths, weaknesses,opportunities and threats of their current financial situation using all applicable financial ratiosand formulas.

Question #2Shelly and Alan have recently lost a close friend in a car accident. They feel so sad to see theirfriends wife left struggling to raise and provide for her 2 children all alone. Shelly and Alan havegiven some thought to the familys financial affairs should an unexpected tragedy occur. Their wishes include: family remains in the home, $140,000 is available for the childrens education, if one spouse passed away the other would need supplemental income equivalent to 50% of the other spouses gross income until Ally completed a post secondary degree at 22. If they both passed away Alans sister would take care of the children and would require an income of $ 20,000 each until Ally completed a post-secondary degree at 22.

Shelly and Alan would like the team to assess the amount of life insurance they would need if:1) Shelly passed away 2) Alan passed away and 3) both pass away.4)They also want to know if there is a rider that would provide protection for both their children until they are adults.5) Shelly and Alan are also concerned about getting sick or being in an accident and not being able to provide for their family. They ask you what steps they could take to protect againstillnesses or injuries in case they are unable to work for 6 month 1 year. .05 discount rate make and state any other assumptions and ignore estate taxesQuestion #3Provide 2 options of how Shelly & Alan could use their monthly surplus cash to address any of the weaknesses, opportunities or threats identified. Provide a rationale for each option and how it addresses a gap or capitalizes on an opportunity, state any information/questions you may have of the clients and clarify next steps.