Doug and Andrea are happily married. They met a few years ago, while hiking, in northern...

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Doug and Andrea are happily married. They met a few years ago, while hiking, in northern Ontario. Two years ago, Doug and Andrea bought a house in Kitchener. When they bought their home, they paid $800,000 for it; today it is valued at $1,000,000. To finance the purchase of their home Doug and Andrea took out a mortgage from ND Financial. The current balance of their mortgage is $615,000. Currently, Doug and Andrea do not have children but would like to have them in the future. Doug, is 31 years old and earns $85,000 a year working for Road Builders Inc. Andrea, is 29 years old and earns $95,000 a year working for PC Construction. Family 2 Mike is a single parent, aged 57. His daughter, named Christine, is 21 year old and beginning a master's program at the University of Alberta. When Christine's mom passed away, she received a lump sum of money from a li insurance policy. Although Christine does not need financial support for he education, her father would like to cover the tuition for the next two years and then retire. Mike is in good health and believes he will live for many years. Required: a) Identify the stage of the life cycle each family is in and support your answer using the information in the case. b) Describe the financial priorities for each family using the information in the case c) Identify and explain how the families differ and why. Doug and Andrea are happily married. They met a few years ago, while hiking, in northern Ontario. Two years ago, Doug and Andrea bought a house in Kitchener. When they bought their home, they paid $800,000 for it; today it is valued at $1,000,000. To finance the purchase of their home Doug and Andrea took out a mortgage from ND Financial. The current balance of their mortgage is $615,000. Currently, Doug and Andrea do not have children but would like to have them in the future. Doug, is 31 years old and earns $85,000 a year working for Road Builders Inc. Andrea, is 29 years old and earns $95,000 a year working for PC Construction. Family 2 Mike is a single parent, aged 57. His daughter, named Christine, is 21 year old and beginning a master's program at the University of Alberta. When Christine's mom passed away, she received a lump sum of money from a li insurance policy. Although Christine does not need financial support for he education, her father would like to cover the tuition for the next two years and then retire. Mike is in good health and believes he will live for many years. Required: a) Identify the stage of the life cycle each family is in and support your answer using the information in the case. b) Describe the financial priorities for each family using the information in the case c) Identify and explain how the families differ and why.

Answer rating: 100% (QA)

a Doug and Andrea are in the Accumulation Stage of their life cycle They have purchased their home a... View the full answer