Please explain it all in a Excel file. Don't ask for additional information as this is the
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Please explain it all in a Excel file. Don't ask for additional information as this is the entire question which I have got.
Required:
Calculate their life expectancy (5%)
Prepare their current net worth statement (10%)
Prepare their retirement incomes budget (20%)
Prepare their retirement expenses budget (20%)
Prepare their retirement cash budget (20%)
Calculate the amount of retirement fund they need to retire (10%)
Calculate the financial cap between their current net worth and retirement fund (5%)
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This assignment will allow students to demonstrate their knowledge and application of personal finance planning. Personal finance planning includes finance management, risk management, investment, and retirement planning. In the assignment, we continue working with Eric and Kim and help them plan their retirement. Eric just turned 55, whereas Kim turned 54. Both have been active and do daily exercise. Eric and Kim are both non-smokers and rarely drink. Kim's parents are healthy, and they are in their 80s. There are not lots of mental stress for him now. Eric's father passed away 20 years ago due to a car accident, and his mother is in his 80s and healthy. Eric started his own consulting business and had many challenges ten years ago. The company is now stable, and he has employees managing the client accounts most of the time. He only shows up in important meetings. Kim has worked for the same organization and is not planning to change until her retirement. When Eric's father died, his mother received his father's life insurance payout. His mother, Sara, paid off the mortgage balance and has a significant amount left to cover her retirement. Sara wanted to keep the house in memory of her husband, but it was too much for her to take care of the property physically and mentally as her husband had just passed away. She hesitated between selling or keeping the property. Eric consulted with Kim and decided to purchase the property from his mother. They had Sara live with them and help them care for the kid, Danny. Also, Sara would share the housing and living expenses as well. It was the perfect solution for everyone. They were able to keep Eric's mother close and help her cope with the loss of her husband. Sara could help them with the kid and share living expenses. Now, Danny is 24 and about to get married. Sara is in her late 80s, and she needs additional care. After consulting with Eric and Kim, Sara moved to a retirement home in Florida to enjoy the warm weather. More importantly, she knows it will be too much for Eric and Kim to take care of her once she is in her no-go years. Now, Eric and Kim have no one else to worry but themselves about their retirements. A few days ago, Eric called and left a message, and they wanted to check their financial stability. Today, they came to the meeting and informed you that they would like to enjoy their earlier retirement to travel. Even though they know that their house is too much space for them, they want to keep them as Eric and Danny grew up in the house. There are so many good memories for Eric, and he is considering passing on the house to Danny as a heritage. Eric wants to know whether Kim and himself can afford to keep the house financially without compromising their retirement funds. Eric and Kim are considering early retirement at age 60 but are unsure about their financial situation after retirement. For the last 40 years, both have lived in Canada and made the maximum CPP contribution even after Eric started his own business. When Eric left his firm and started his own business, he had to give up his employer's pension plan. He received a lump sum payout of $50,000 after the income taxed payout. Eric invested payout in his TFSA accounts. Kim has been working for the same company for the last 25 years, and her company provides a defined benefit pension plan. If Kim continues working for the company until her retirement, she will be eligible to receive a fixed payment of $2,000 until her death. The pension income is fully taxable, fixed, and without inflation adjustment. Besides their CPP contribution, Eric and Kim have invested with your firm through registered and non- This assignment will allow students to demonstrate their knowledge and application of personal finance planning. Personal finance planning includes finance management, risk management, investment, and retirement planning. In the assignment, we continue working with Eric and Kim and help them plan their retirement. Eric just turned 55, whereas Kim turned 54. Both have been active and do daily exercise. Eric and Kim are both non-smokers and rarely drink. Kim's parents are healthy, and they are in their 80s. There are not lots of mental stress for him now. Eric's father passed away 20 years ago due to a car accident, and his mother is in his 80s and healthy. Eric started his own consulting business and had many challenges ten years ago. The company is now stable, and he has employees managing the client accounts most of the time. He only shows up in important meetings. Kim has worked for the same organization and is not planning to change until her retirement. When Eric's father died, his mother received his father's life insurance payout. His mother, Sara, paid off the mortgage balance and has a significant amount left to cover her retirement. Sara wanted to keep the house in memory of her husband, but it was too much for her to take care of the property physically and mentally as her husband had just passed away. She hesitated between selling or keeping the property. Eric consulted with Kim and decided to purchase the property from his mother. They had Sara live with them and help them care for the kid, Danny. Also, Sara would share the housing and living expenses as well. It was the perfect solution for everyone. They were able to keep Eric's mother close and help her cope with the loss of her husband. Sara could help them with the kid and share living expenses. Now, Danny is 24 and about to get married. Sara is in her late 80s, and she needs additional care. After consulting with Eric and Kim, Sara moved to a retirement home in Florida to enjoy the warm weather. More importantly, she knows it will be too much for Eric and Kim to take care of her once she is in her no-go years. Now, Eric and Kim have no one else to worry but themselves about their retirements. A few days ago, Eric called and left a message, and they wanted to check their financial stability. Today, they came to the meeting and informed you that they would like to enjoy their earlier retirement to travel. Even though they know that their house is too much space for them, they want to keep them as Eric and Danny grew up in the house. There are so many good memories for Eric, and he is considering passing on the house to Danny as a heritage. Eric wants to know whether Kim and himself can afford to keep the house financially without compromising their retirement funds. Eric and Kim are considering early retirement at age 60 but are unsure about their financial situation after retirement. For the last 40 years, both have lived in Canada and made the maximum CPP contribution even after Eric started his own business. When Eric left his firm and started his own business, he had to give up his employer's pension plan. He received a lump sum payout of $50,000 after the income taxed payout. Eric invested payout in his TFSA accounts. Kim has been working for the same company for the last 25 years, and her company provides a defined benefit pension plan. If Kim continues working for the company until her retirement, she will be eligible to receive a fixed payment of $2,000 until her death. The pension income is fully taxable, fixed, and without inflation adjustment. Besides their CPP contribution, Eric and Kim have invested with your firm through registered and non-
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Here are the detailed calculations and analyses for Eric and Kims retirement planning 1 Calculate their life expectancy 5 Based on the information pro... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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