Philip is a 30-year old single software programmer, below is some of his financial information, for the year just ended.

• Investment account (70% fixed income/ 30%equity)$165,000
• Interestincome$5,300
• Dividendincome$3,600
• Capital gainsincome$1,500
• EquityBeta0.90

• RRSP Account (60% fixed income/40%equity)$50,000
• Interestincome$1,500
• Dividendincome$2,500
• Capital gainsincome$2,000
• EquityBeta0.95

• He has $23,500 in unused RRSP contribution room
• Annualsalary$120,000
• Assets -Condo$700,000
• Assets -Car$80,000
• Mortgage$300,000
• Debt - Carloan$40,000
• Marginal taxbracket46.41%
• Company pensionplan$35,000
• Pensionadjustment$14,500

1. Calculate the amount of tax Philip must pay on his investment account income.
2. What is Philip's RRSP contribution for the year just ended?
3. What advice would you give Philip about his current asset mix with respect to tax efficiency for his investment account and his RRSP account?Would you recommend any changes?
4. If Philip's risk tolerance is above average, what do you think of Philip's investment portfolios in terms of asset mix and market risk?Would you recommend any changes, if so, why?
5. Fast forward 10 years, and Philip is now married with two kids.He is no longer with his software firm but has just recently started a company with two other partners. Philip has had to use half of his investments to set up this company and has had to pledge his house as collateral for a loan.He expects to earn a minimal amount over the next 3-5 years while he builds up his business.His wife is a high school teacher and earns enough to cover most of their daily living expenses.What type of investment advice would you give to Philip now?