Kelce $(28)$ and Taylor $(26)$ were married five years ago, only months after graduating fromuniversity. Kelce recently received a joint degree in teaching degree and kinesiology. He isemployed with as a high school football coach earning $$76,600$ per year. Taylor has a doctoratein veterinary medicine and works with cats earning $$84,600$ per year. They estimate their aftertax income to be about $$64,500$ and $$59,000$ respectively. Both feel that their job positions aresecure.Kelce and Taylors $1$st child Karma was born in February of last year. Taylor has just returned towork after a years maternity leave. They pay $$850$ per month in childcare costs. They wouldlike to have a second child $($they plan on naming him or her Kansas$)$ within the next $3$ years butthey want to be in their own home before the child is born.They currently live in a $3-$bedroom townhouse in southwest Calgary that they rent for $$1,950$ permonth.Taylor drives a ten$-$year$-$old Toyota Camry valued at $$5500$ and Kelce drives a three$-$year$-$oldToyota Tacoma valued at perhaps $$21,000.$ Kelce purchased his Tacoma two years ago for$$32,000.$ He financed the purchase with a five$-$year $$30,000$ car loan at $5\mathrm{.}9\%.$ His monthlypayment is $$496,$ and his current balance is approximately $$21,500.$Kelce and Taylor have been saving $$500$ per month for the past four years for a down paymenton their $1$st home. They currently have about $$41,000$ in a joint savings account. They plan oncontinuing to save $$500$ per month to increase the amount they put down on the home. They planon buying a $3-$bedroom home near the home they are currently renting. They expect to pay about$$450,000.$ They want to buy the home within the next two years as they want another child andwould like to be in the home before the child is born.Kelce and Taylor have student loan balances totaling $$8500.$ They pay $$118$ per month and theinterest rate is $6\mathrm{.}5\%.$ They also have a $$3,500$ balance on a joint credit card from last summersvacation. They are paying $$200$ per month and the interest rate is $19\mathrm{.}9\%.$Kelce has been contributing $$300$ per month to a RRSP account and his current balance is about$$16,000.$ Taylor works for the Alberta Government and is part of the LAPP Pension plan. Shecontributes $9\%$ of her gross pay to her pension plan. She plans on retiring at age $60$ with a fullpension.Their monthly expenses include utilities $$495,$ renters insurance $$60,$ groceries and householdstuff $$900,$ clothes budget $$300,$ haircuts and personal care $$125,$ entertainment and eating out$$575,$ health club membership and sports fees, $$225,$ gifts budget $$100,$ charity $$100,$ travelbudget $$350,$ auto insurance $$110,$ auto maintenance budget $$100,$ auto fuel and oil changes$$600,$ misc. auto $$25.$Taylor & Kelce have exciting plans for the future. They would like to purchase their $1$st home inthe next couple of years. They want to have a second child once they are in their home andTaylor will want to take another year of maternity leave. They want to be in control of theirfinancial future therefore they would like to get out of debt as soon as possible so they only debtthey have going forward is their home. They want to be able to take family vacations withoutputting the trip on their credit card and stressing about paying the balance off. They also want tobe able to save for their vehicles in the future, so they dont have to take on debt. In addition,they know how valuable their university education is for themselves and they want to be in aposition to pay for their childrens tuition and as much of the room and board they may need aspossible.They feel good about how they have managed their money to date. However, they are not surewhat they should be doing to make sure they can achieve their goals and they dont really knowif what they have been doing is what they should be doing. They have come to you looking forhelp in creating a financial plan.

What are your project assumptions. Explain in detail.