regarding these informations can we find an analysis and solution? please i need help

Background on the Clients - Mary and John Smith have been married for 10 years - They have no kids together, but each of them have ene kid with another person(who are both deceased) - John's child is Lisa, age 11, who plans on attending Mankato State for 4 years. - Mary's child is Robby, age 27. who works in the publications business with her. - John is a nurse who works for an orthepedist Goals to Accomplish - They want to get their personal financial aftairs in onder - They want to cover all goals and debt in the event of cither ene's death - They would especially like to fund the remaining years of education for Lisa, and possibly grad school afterwards - They would like disability insurance for both to cover at least 66% of their income - They would lake Long-term care incurance for both to starting at age 80 for a benefit of at least 5 years - They both plan to retire whea Mary reaches age 65, when they will need adequate retirement income. They want to live on 100% of what they are living on today - They would like at least 70% of their income so come from a guaranteed source like an annuity at retirement. They would be willing to utilize some of their existing investments in sapplying this income Goals to Accomplish (Continued) - Mary would be interested in starting ber own 401(k) plan at ber company to build more retirement savings - They want to ptovide for an efficient transfer of the business in the event of a premature dearh to Mary or her partner - They would like to fund the remaining yeats of education for Lisa, and possibly grad school afterwards - They are income tax adverse, and would like ideas on how to minimize their tax liability Factors to Consider - Mary Smith owns a 50\% interest in a closely beld company, Eden City Publications. Mary sister, Martha is the 50% owner, who is no longer active in the business. Mary has owned Eden City for 23 years, and it has good stable cash flow with no debt. - The Smiths are in the 28% masginal tax bracket and capital gains are taxed at 15%. Dividends are taxed at the capital gains rate as well - They are both concerned about each of them dying too carly, about losing the business if Mary of her partner dies, about living tos long. cost of bealit care or Long-tern care - Johin is concerned about getting Alzheimer's - They both expect to have time to travel, and to have time with family and friends - The Smith's required rate of return is 9%. They consider themselves to be moderate to moderately aggressive investors and feel S100,000 is an adequate amount for an emergency fund. Factors to Consider (Continued) - John is eligible to participate in employer's 401(k) plan, but he has not chosen to participate. His employer proyides a dollar-for-dollar match of up to 3% of his gross salary. There have never been any contributions to the account on John's behalf by the cmployer. - Mary does not have a retirement plan at Eden City, bat she usually makes IRA contributions for John and herself. Mary has another IRA from a previous employer. They've talked to their CPA about this, and he thought a profit-sharing plan with a 401(k) plan would be the best approach if this route is taken. - Mary is hoping that the ale of the businecs can provide enough income for her and Joha in retirement. Mary plans on being active in retircment, with maybe some consulting income on the side. John plans on working on his bobbies of wood-working and photography. They woukd like to live on 100% of what they are making in today's dollars, with this amount decreasing by 1/3 at the death of either one. - They want to retire when Mary turns 65 , and want an active lifestyle, spending time with family and friends. They are worried about running ont of moncy if they live too long. Factors to Consider (Continued) - Mary wants to make sure that if something happens to cither Mary or her sister that Eden Publications will pass on efficiently to Robby. They have no formal transfer documents in place for this transfer other than a will. - Mary has a will that leaves 50% of her personal property going to Lisa, and the other 50% going to John, with her interest in the business going to Robby. John's will leaves everything to Mary. - She is interested in other estate plantning techniques that woald maximize the actual transfer going to Robby, but still protect John for his life, and Lisa if she survives him. - They expect inflation to average 4% annually, both current and in retirement - They expect their incomes to increase by 4% annually until Mary retires. - They are both moderate risk tolerance - They expect the long-term stock market rate of return to be 12% - They expect the yield curve to be normal - They estimate their life expectancies to be mid-80's - Risk tolerance score: Mary is 45, and John is 37 . Together, they are in the middle Background on the Clients - Mary and John Smith have been married for 10 years - They have no kids together, but each of them have ene kid with another person(who are both deceased) - John's child is Lisa, age 11, who plans on attending Mankato State for 4 years. - Mary's child is Robby, age 27. who works in the publications business with her. - John is a nurse who works for an orthepedist Goals to Accomplish - They want to get their personal financial aftairs in onder - They want to cover all goals and debt in the event of cither ene's death - They would especially like to fund the remaining years of education for Lisa, and possibly grad school afterwards - They would like disability insurance for both to cover at least 66% of their income - They would lake Long-term care incurance for both to starting at age 80 for a benefit of at least 5 years - They both plan to retire whea Mary reaches age 65, when they will need adequate retirement income. They want to live on 100% of what they are living on today - They would like at least 70% of their income so come from a guaranteed source like an annuity at retirement. They would be willing to utilize some of their existing investments in sapplying this income Goals to Accomplish (Continued) - Mary would be interested in starting ber own 401(k) plan at ber company to build more retirement savings - They want to ptovide for an efficient transfer of the business in the event of a premature dearh to Mary or her partner - They would like to fund the remaining yeats of education for Lisa, and possibly grad school afterwards - They are income tax adverse, and would like ideas on how to minimize their tax liability Factors to Consider - Mary Smith owns a 50\% interest in a closely beld company, Eden City Publications. Mary sister, Martha is the 50% owner, who is no longer active in the business. Mary has owned Eden City for 23 years, and it has good stable cash flow with no debt. - The Smiths are in the 28% masginal tax bracket and capital gains are taxed at 15%. Dividends are taxed at the capital gains rate as well - They are both concerned about each of them dying too carly, about losing the business if Mary of her partner dies, about living tos long. cost of bealit care or Long-tern care - Johin is concerned about getting Alzheimer's - They both expect to have time to travel, and to have time with family and friends - The Smith's required rate of return is 9%. They consider themselves to be moderate to moderately aggressive investors and feel S100,000 is an adequate amount for an emergency fund. Factors to Consider (Continued) - John is eligible to participate in employer's 401(k) plan, but he has not chosen to participate. His employer proyides a dollar-for-dollar match of up to 3% of his gross salary. There have never been any contributions to the account on John's behalf by the cmployer. - Mary does not have a retirement plan at Eden City, bat she usually makes IRA contributions for John and herself. Mary has another IRA from a previous employer. They've talked to their CPA about this, and he thought a profit-sharing plan with a 401(k) plan would be the best approach if this route is taken. - Mary is hoping that the ale of the businecs can provide enough income for her and Joha in retirement. Mary plans on being active in retircment, with maybe some consulting income on the side. John plans on working on his bobbies of wood-working and photography. They woukd like to live on 100% of what they are making in today's dollars, with this amount decreasing by 1/3 at the death of either one. - They want to retire when Mary turns 65 , and want an active lifestyle, spending time with family and friends. They are worried about running ont of moncy if they live too long. Factors to Consider (Continued) - Mary wants to make sure that if something happens to cither Mary or her sister that Eden Publications will pass on efficiently to Robby. They have no formal transfer documents in place for this transfer other than a will. - Mary has a will that leaves 50% of her personal property going to Lisa, and the other 50% going to John, with her interest in the business going to Robby. John's will leaves everything to Mary. - She is interested in other estate plantning techniques that woald maximize the actual transfer going to Robby, but still protect John for his life, and Lisa if she survives him. - They expect inflation to average 4% annually, both current and in retirement - They expect their incomes to increase by 4% annually until Mary retires. - They are both moderate risk tolerance - They expect the long-term stock market rate of return to be 12% - They expect the yield curve to be normal - They estimate their life expectancies to be mid-80's - Risk tolerance score: Mary is 45, and John is 37 . Together, they are in the middle