Jennifer and Samuel Stevens, both age 50 have come to see you, their financial planner to develop a retirement plan. Jennifer works full time at an Accounting Firm earning $80,000 a year after taxes and deductions and Samuel works full time as a Software Engineer earning $95,000 after taxes and deductions. The Stevens have one child, Rebecca (24) who just finished University and is living on her own. In addition, The Stevens live in a townhouse in Etobicoke that is worth $1.3 million and has $120,000 remaining on the mortgage which is on track to be paid off in 10 years. The Stevenss also share a five year old Hondo SUV that is valued at $20,000 and has no existing loan balance. Regarding retirement, the couple would like to retire at 65 and want to ensure they are on track towards a comfortable retirement which would require the couple to have 2 million, combined in savings at age 65. Jennifer and Samuel were both born in Toronto and have always resided in Canada. In addition, both Jennifer and Samuel have been employed full time since graduating from College at age 22 with the exception of Jennifer taking a year off of work during her maternity leave. Please keep in mind the following: The chequing Account balance is seen by the couple as an emergency fund, and therefore they dont want it included in calculations for Retirement Income. The Stevens have an abundance of questions for you and have requested you to determine if theyre on the right path towards achieving their retirement goal. During the meeting, the couple has provided you with the following information that better captures their current financial situation. Monthly Expenses (Joint): Mortgage Payment: $1100 Home maintenance: $200 Utilities: $300 Property Taxes $500 Auto Insurance: $200 Gas: $400 Food: $1200 Clothing: $400 Internet/Cell phone bills: $300 Dining out & Entertainment: $350 Vacations $1,000 Monthly Contributions to Registered Savings Accounts: Jennifer and Sam each contribute $250 per month their RRSP accounts. Assets (Joint) Principal Residence: $1,300,000 Honda SUV: $20,000 Chequing Account: $50,000 Savings Account: (earning 2% per year): $300,000 Debt (Joint) Mortgage: $120,000 Jennifers Assets TFSA: $50,000 (earning 2% per year) RRSP $140,000 (earning 2% per year) Samuels Assets: TFSA: $60,000 (earning 2% per year) RRSP: $100,000 (earning 2% per year) Assignment Instructions Answer the following questions: 1.As the Stevenss Financial Planner, are they on the right track to reach their retirement goal? Using TVM Calculations, determine at the current savings rate how close to the goal of 2 million at retirement the clients are projected to achieve. (3 marks) MODE P/Y C/Y N I/Y PV PMT FV 2.The Stevens are not very familiar with Old Age Security (OAS) as well as what the eligibility criteria is to receive OAS is. Provide a brief explanation of what OAS is and whether or not they would be eligible to receive the maximum benefit. (Your response should be between 2-3 sentences long). (2 marks) 3.In addition to questions about OAS, The Stevens have questions about the Canada Pension Plan (CPP). Provide a brief explanation on what CPP is and how one can be eligible for the maximum CPP benefit. (Your response should be between 2-3 sentences long). (2 marks) 4.The Stevens are wondering whether it would make more sense to take CPP early or to defer it. How would you respond to their question using relevant concepts from the course? (Your response should be between 3-5 sentences long). (4 marks) 5.After reviewing the Stevens financial situation, provide a recommendation to the couple that would optimize their retirement goal plan. Be sure to elaborate on how your recommendation would help them with achieving their retirement goals. (Your response should be between 4-6 sentences long). (4 marks)