Retirement Goal Plan Assignment $15\%$Susan and Leo Smith, both age $50$ have come to see you, their financial planner todevelop a retirement plan. Susan works full time at an Accounting Firm earning$$96,000$ a year after taxes and deductions and Leo works full time as a SoftwareEngineer earning $$98,000$ after taxes and deductions. The Smith$$s have one child,Rebecca $(24)$ who just finished University and is living on her own.In addition, The Smith$$s live in a townhouse in Bolton that is worth $$1$ million andhas $$160,000$ remaining on the mortgage which is on track to be paid off in $10$years. The Smith$$s also share a four year old Toyota SUV that is valued at $$28,000$and has no existing loan balance.Regarding retirement, the couple would like to retire at $65$ and want to ensurethey are on track towards a comfortable retirement which would require thecouple to have $1\mathrm{.}8$ million, combined in savings at age $65.$ Susan and Leo wereboth born in Toronto and have always resided in Canada. In addition, both Susanand Leo have been employed full time since graduating from College at age $22$with the exception of Susan 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, andtherefore they don$$t want it included in calculations for Retirement Income.The Smith$$s have an abundance of questions for you and have requested you todetermine if they$$re on the right path towards achieving their retirement goal.During the meeting, the couple has provided you with the following informationthat better captures their current financial situation.Monthly Expenses $($Joint$)$:Mortgage Payment: $$1400$Home maintenance: $$300$Utilities: $$280$Property Taxes $$480$

Auto Insurance: $$160$Gas: $$360$Food: $$1400$Clothing: $$380$Internet$/$Cell phone bills: $$260$Dining out & Entertainment: $$560$Vacations $$1,200$Monthly Contributions to Registered Savings Accounts:Susan and Leo each contribute $$280$ per month their RRSP accounts.Assets $($Joint$)$Principal Residence: $$1,000,000$SUV: $$28,000$Chequing Account: $$10,000$Savings Account: $($earning $2\%$ per year compounded annually$)$: $$480,000$Debt $($Joint$)$Mortgage: $$160,000$Susan$$s AssetsTFSA: $$66,000($earning $2\%$ per year compounded annually$)$RRSP $$100,000($earning $2\%$ per year compounded annually$)$Leo$$s Assets:TFSA: $$75,000($earning $2\%$ per year compounded annually$)$

RRSP: $$140,000($earning $2\%$ per year compounded annually$)$Assignment Instructions $$ Answer the following questions:$1.$ As the Smith$$s Financial Planner, are they on the right track to reach theirretirement goal? Using TVM Calculations, determine at the current savingsrate how close to the goal of $1\mathrm{.}8$ million at retirement the clients areprojected to achieve. $(3$ marks$)2.$ The Smith$$s are not very familiar with Old Age Security $($OAS$)$ as well as whatthe eligibility criteria is to receive OAS is$.$ Provide a brief explanation of whatOAS is and whether or not they would be eligible to receive the maximumbenefit. $($Your response should be between $2-3$ sentences long$).(2$ marks$)3.$ In addition to questions about OAS, The Smith$$s have questions about theCanada Pension Plan $($CPP$).$ Provide a brief explanation on what CPP is andhow one can be eligible for the maximum CPP benefit. $($Your responseshould be between $2-3$ sentences long$).(2$ marks$)4.$ The Smith$$s are wondering whether it would make more sense to take CPPearly or to defer it$.$ How would you respond to their question using relevantconcepts from the course? $($Your response should be between $3-5$ sentenceslong$).(4$ marks$)5.$ After reviewing the Smith$$s financial situation, provide a recommendation tothe couple that would optimize their retirement goal plan. Be sure toelaborate on how your recommendation would help them with achievingtheir retirement goals. $($Your response should be between $4-6$ sentenceslong$).(4$ marks$)$