Retirement Plan Assignment 15% financial planner to develop a retirement plan. Sara Landis, age 50 works full time at a Law Firm earning $40,000 a year after taxes and deductions and Michael Landis, age 50 works full time as a Manager with the City of Toronto earning $65,000 a year after taxes and deductions. The Landis have one daughter, Mira (in Grade 10, and will be 16 years old after her birthday this year) who has dreams of becoming a Pharmacist and is planning to study at the University of Toronto while living at home, for which the couple plans to provide funding of approximately $60,000. In addition, The Landis live in a house in North York that is worth $1.3 million and has $150,000 remaining on the mortgage which they would like to pay off in 10 years. The Landis also share a four-year-old Toyota SUV that is valued at $25,000 and has no existing loan balance. Sharing a car works because of the GTAs Transit options. Regarding retirement, the couple would like to retire at age 65 and want to ensure they are on track towards a comfortable retirement which would require the couple to have 2 million, combined in savings at age 65. Please keep in mind the following: The chequing Account balance is seen by the couple as an emergency fund, and therefore they dont want it included in calculations for Retirement Income. The Landis have requested you to determine if theyre on the right path towards achieving their goals for Retirement and Education funding ? What recommendations can you provide them to optimize their financial plan ? During the meeting, the couple has provided you with the following information that better captures their current financial situation. Monthly Expenses (Joint): Mortgage Payment: $1400 Home maintenance: $100 Utilities: $300 Property Taxes $600 Auto Insurance: $200 Gas: $350 Transit: $100 Auto maintenance and parking fees: $200 Food: $1,800 Clothing: $400 Internet/Cell phone bills: $300 Dining out & Entertainment: $350 Vacations $1,000 Monthly Contributions to Registered Savings Accounts: RRSPs combined $500. RESPs $200 Assets (Joint): Principal Residence: $1,300,000 Honda SUV: $25,000 Chequing Account: $55,000 Savings Account: $420,000 (earning 3 % per year): RESP for Mira: $45,000 (invested in a flexible GIC earning 3 % per year) based on $30,000 of contributions and $6,000 of CESGs to date) Debt (Joint) Mortgage: $150,000 (just renewed for 5 years at 4%) Sara Landis Assets: TFSA: $60,000 (earning 3 % per year) RRSP $130,000 (earning 3 % per year) Michael Landis Assets: TFSA: $80,000 (earning 3 % per year) RRSP: $150,000 (earning 3 % per year) Assignment Instructions As the Landis Financial Planner, are they on the right track to reach their retirement goal? Please ensure you fill in the TVM chart below, then using a TVM calculation, determine at the current savings rate how close to the goal of 2 million at retirement the clients are projected to be ? (5 marks) MODE P/Y C/Y N I/Y PV PMT FV END Using relevant concepts from the course, provide 5 recommendations to the Landis and explain why these recommendations would optimize their retirement plan, goal of paying down their mortgage in 10 years, and /or, help provide for their goal of funding their daughter Miras education. Each recommendation should be between 3-4 sentences long. (10 marks) Bonus Question: Explain what the Landis need to do to take full advantage of the maximum RESP CESG available to them ? How will this impact their education funding goal for Mira ? (2 marks - you must show and explain your work for full credit)