Reference no: EM133109343
Project:
Review the information below. Use the given information to provide a plan for these people. Do not be afraid to make assumptions (this likely will be necessary-just state them for me). Ensure you use your financial planning knowledge from your other courses, but please ensure it is written with an eye to taxation and how it helps with decision making.
As usual, there is no "right" answer here. I am looking for unique reports and/or a presentation that you would give clients (although in written form). There are no required number of pages, and no specific layout or format I need. Use your best judgement as if this is a real life situation and you have a few weeks to provide them with your plan. (Just remember....this is a tax course...so be sure to include tax costs, numbers, benefits and options as much as possible in your suggestions, planning advice and conclusions).This is a financial plan for them...and not just about taxes (although that is hard to believe).
Information
A recently married couple just graduated from post-secondary education and they both have started full-time, well-paying jobs. They have come to you as a Financial Planner for advice. Of course, they are very interested in taxation and want to be sure that you consider the tax consequences and tax's impact on decision making in any advice you provide!
You sat them down and during your interview you discovered the following information:
The couple's names are Mark and Suneeta. They are 30 and 29 years old. Mark earns $130,000/year in his job on salary and Suneeta earns $95,000 on salary. Both of these are gross salary (before tax and deductions).
Each set of parents gifted the couple $50,000 cash, for a total amount of $100,000. The married couple say they each have $30,000 of RRSP room available (before they started their jobs this year-so from last year). The couple owes $20,500 in student loans ($15000 for Mark and $5500 for Suneeta).
Their goals include paying off their student loans, buying a house in the next few years, maybe having a couple of children and possibly eventually getting a vacation home, or travelling a bit. They also would like to do some saving, and especially for retirement.
They think they can live off approximately $70,000/year (rent, cars, food, etc.). They expect to pay about $750,000 to $850,000 for a house and make a 10% down payment at the time of purchase.
Design a plan for this couple to try to achieve their goals and objectives.