Retirement goal planning | Accounting homework help

Retirement Goal Plan Assignment – 15%

Vanessa and Joe Samson both age 49 have come to see you, their financial planner to develop a retirement plan. Vanessa works full time at an Accounting Firm earning $70,000 a year after taxes and deductions and Joe works full time as a Software Engineer earning $105,000 after taxes and deductions. The Samson’s have one child, Rebecca (24) who just finished University and is living on her own.

In addition, The Samson’s live in a townhouse in Scarborough that is worth $1 million and has $180,000 remaining on the mortgage which is on track to be paid off in 10 years. The Samson’s also share a five year old Mercedes SUV that is valued at $36,000 and has no existing loan balance.

Regarding retirement, the couple would like to retire at 65 and want to ensure they are on track towards a comfortable retirement which would require the couple to have 1.6 million, combined in savings at age 65. The Samson’s were both born in Toronto and have always resided in Canada. In addition, both Vanessa and Joe have been employed full time since graduating from College at age 22 with the exception of Vanessa 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, and therefore they don’t want it included in calculations for Retirement Income.

The Samson’s have an abundance of questions for you and have requested you to determine if they’re on the right path towards achieving their retirement goal. During the meeting, the couple has provided you with the following information that better captures their current financial situation.

Monthly Expenses (Joint):

Mortgage Payment: $1200

Home maintenance: $300

Utilities: $260

Property Taxes $400

Auto Insurance: $160

Gas: $600

Food: $1200

Clothing: $580

Internet/Cell phone bills: $260

Dining out & Entertainment: $480

Vacations $1,200

Monthly Contributions to Registered Savings Accounts:

The Samson’s each contribute $240 per month their RRSP accounts.

Assets (Joint)

Principal Residence: $1,000,000

SUV: $36,000

Chequing Account: $20,000

Savings Account: (earning 2% per year): $380,000

Debt (Joint)

Mortgage: $180,000

Vanessa’s Assets

TFSA: $78,000 (earning 2% per year)

RRSP $100,000 (earning 2% per year)

Joe’s Assets:

TFSA: $86,000 (earning 2% per year)

RRSP: $160,000 (earning 2% per year)


Assignment Instructions – Answer the following questions:

1. As the Samson’s Financial Planner, are they on the right track to reach their retirement goal? Using TVM Calculations, determine at the current savings rate how close to the goal of 1.6 million at retirement the clients are projected to achieve. (3 marks)

MODE

P/Y

C/Y

N

I/Y

PV

PMT

FV

2. The Samson’s are not very familiar with Old Age Security (OAS) as well as what the eligibility criteria is to receive OAS is. Provide a brief explanation of what OAS is and whether or not they would be eligible to receive the maximum benefit. (Your response should be between 2-3 sentences long). (2 marks)

3. In addition to questions about OAS, The Samson’s have questions about the Canada Pension Plan (CPP). Provide a brief explanation on what CPP is and how one can be eligible for the maximum CPP benefit. (Your response should be between 2-3 sentences long). (2 marks)

4. The Samson’s are wondering whether it would make more sense to take CPP early or to defer it. How would you respond to their question using relevant concepts from the course? (Your response should be between 3-5 sentences long). (4 marks)

5. After reviewing the Samson’s financial situation, provide a recommendation to the couple that would optimize their retirement goal plan. Be sure to elaborate on how your recommendation would help them with achieving their retirement goals. (Your response should be between 4-6 sentences long). (4 marks)

Qualified Writings
Get 20% Discount on this Paper
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.