Reference no: EM133305439
Harsh, 54 years old and Julie, 36 years old live in Brampton, Ontario. They are married and they have been together for the past seven years. They are both in excellent health.
This is Harsh's second marriage and Julie's first. Harsh is making regular spousal support payments to his ex-wife Kopal under an agreement they signed in September 2010. Harsh and Kopal did not have any children together. Harsh and Julie have a daughter, Crystal who is now 3 years old. They pay $ 1,000 a month to send her to a daycare center. They heard that the government of Ontario is bringing $ 10-a-day day-
care and they are very excited about that. They are wondering if you know if they can take advantage of this right now.
EDUCATION PLANNING
Harsh and Julie would like to set aside some money for Crystal's education. They are also planning to have another child very soon. They heard that one way to go is purchase a whole life insurance policy. They would like your advice on the best way to save for Crystal's education. They heard about RESPs but they are unsure about the details and what happens if their daughter does not make it to College or University.
Tuition fees in Ontario are increasing at a faster rate than the CPI (inflation) and they are currently around $ 12,000 per year. They would like your advice on how to save enough to send Crystal for at least 4 years of post-secondary education.
Provide detailed education plan and projections for Crystal
Comment on the merits of purchasing a life insurance policy for Crystal