CFP 102 Case Study/ assignment Written assessment designed to evaluate communication skills. Worth 20% of your final grade. Delivery details: Deliverable no later than 5:00 PM EST 3 December 2021...

I have attached an excel sheet along with the assignment file. The sheet is for reference and help. Please look into after reading the instruction about assignment.


CFP 102 Case Study/ assignment Written assessment designed to evaluate communication skills. Worth 20% of your final grade. Delivery details: Deliverable no later than 5:00 PM EST 3 December 2021 Email to [email protected] Your assignment must be completed and sent in a Word file (I will decline pdfs, jpegs and other files). I will not download files from the ‘cloud.’ You may also provide supporting documentation with EXCEL if you wish. Your document must be written in size 12 Arial font and the file name must be formatted as: Last name_first name_cfp102_case study The purpose of this assignment: It is designed to help you learn how to communicate clearly through written language. You are tasked with developing a financial plan for hypothetical clients. Fair warning: I would not leave this assignment until the last minute, and/or do the very least amount of effort possible because that will annoy me. Follow the guidance I provide below on how to build your case. Requirements: 1) Appropriate cover/title page 2) Review of the facts (name the clients, their goals and objectives, and the purpose of your report) 3) Create a financial analysis of their situation: how much are they spending and where? Graph it. 4) How much can they save (reasonably) and how should they save it? 5) How do their investments grow over time? 6) You will then make a recommendation to the prospective clients. This recommendation should be logical and reasonable, employing facts to substantiate your position. Specifically you will tell them what to do and when they should do it. You will fail this case study if you do not do this step. 7) Show them the payout progression over time 8) At all times keep written language appropriate and professional. Helpful notes: The importance here is to teach you to make convincingly strong arguments in a professional environment. You should complete the case well before the deliverable date and ask someone to review your work. Get a critical analysis of your work and see how you can improve it. It is recommended that non-native English speakers/writers particularly check their work, noting that in Canada we follow British spelling practices. Assignment facts A couple comes to you asking for financial advice and a plan for securing their retirement. They specifically want to know what their retirement might look like and whether they are saving enough. Make a financial plan for them given the following information. Ages: Spouse 1 is aged 32 and Spouse 2 is aged 30. Annual income : $140 000 combined, spouse 1 earning $60 000 and spouse 2 earning $80 000. Incomes increase 10% for each spouse every 5 years. Current savings: $25 000 in RRSPs $42 000 in TFSAs $30 000 in non registered funds Available registered savings room: Spouse 1 has $27 000 of available RRSP contribution room Spouse 2 has $34 000 of available RRSP contribution room Figure out their TFSA room….. Spending 85% is non discretionary spending 15% is discretionary · Of that 15% a full half is spent on travel and entertainment · 30% is spent on frivolous spending (gifts, etc) · The other 20% is not traced What you want to do to succeed You have to establish reasonable rates of return – what will that be? Figure out a time line – when do they retire, what do they get for CPP and/or OAS and GIS What age do you have them retire, and why? What might a life expectancy look like, and why do you choose that life span? Build this into a full presentation: this is about communicating your ideas (what it says directly above). So I have no problem showing how to solve, because the issue is about communicating the solution. Here is what you do step by step: 1. You want to write a cover page 2. Review of Facts a. Couple b. State income and other given facts c. State RRSP/TFSA space – you have to figure the TFSA space available sorry I didn’t do it for you boo hoo d. What is their spending like – I abstracted it this time, which is fine What you will have to do is target that “lost” money that we don’t really know about – frankly, this is closer to real life in the sense few actually know how every dollar is spent We will draw our savings on that unknown spending area 3. State our assumptions now. Look, you have no idea how long real people will live, and you will have no idea on what rates of return to expect. So I did not give them to you. Lets make this closer to reality So do not panic. Lets establish assumed length of life – what source of information might I use? Where would I get it? Where do I get reasonable rates of return – what source of information might I draw upon ? When might they retire? What ages might you suggest and why, and what reference might you use? Think about this for a second…. How would you feel IF you came to me as this couple, and I provided a plan made on rubbish, garbage data ? Specifically, we will create a baseline, and then a lower estimate and then a higher estimate as it respects · Living · Accumulation · Spending Why? Well yes we are actually doing a great deal of work, but we are demonstrating our ability to PLAN financially 4. So now lets begin our accumulation calculations. Specifically, we will run an assumed savings rate of YOUR CHOICE that is based on the number above. Let us just say of that untraced money 9% (because not one of you wants to use 9% it’s a silly number) will we allocate to annual savings 5. Now, we run an accumulation schedule at that rate of savings, using an estimated rate of return established above. That is our baseline. You then run the accumulation schedule two more times, one lower and one higher than the baseline rate. Don’t use wacky numbers like 76% rates of return….keep it reasonable. 6. Ok, now add the effect of current savings… using similar rates of return. Maybe that non registered account could be flipped over to a registered account… if so, what is the effect ? There will be a tax consequence, and also a possible tax benefit… 7. Ok, now will be calculate how much they actually accumulate based on existing savings and new savings 8. Show this in a graph. Make a big presentation showing how they escalate savings over time 9. Ok, now we retire them. What is their spending rate, do you think ? Now here we will abstract a bit… and again, we have to use some judgement…. Do we want to factor CPP and OAS? Should we do that? 10. Now generate a payout schedule, and create a baseline as well as a lower and higher range. 11. Wrap up a conclusion: the conclusion is that you, Joe financial planner, can help them meet their retirement goals as they mature and evolve. You do not know exactly what those goals and dreams are yet…, they might very well change…. But you show you are the one they should work with 12. Again, I am less concerned with the math and am more interested in how you effectively communicate to the prospective clients that you are the one! That is the goal. So if you have problems with communications, particularly in English, then probably you want others to offer input into your work… constructive criticism is our friend accumulation math the first thing is to set up the spreadsheet and see what we get in terms of their incomes, because we need to calculate the discretionary and non discretionary spending we also need this to determine their annual savings, and establish a rate of return NOTE we will use numbers drawn from a source of information So what does that mean? Well, use something with a proof behind it- a justification spouse 1spouse 2spouse 1spouse 2spouse 1spouse 2total annualsavingstotal5% returnend of year yearage ageincomeincomecontributioncontributioncontribution(prev year)savingson savingstotal savings 13230$ 60,000.00$ 80,000.00$ - 00$ - 0$ - 0$ - 0 23331$ 60,000.00$ 80,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 33432$ 60,000.00$ 80,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 43533$ 60,000.00$ 80,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 53634$ 60,000.00$ 80,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 63735$ 66,000.00$ 88,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 73836$ 66,000.00$ 88,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 83937$ 66,000.00$ 88,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 94038$ 66,000.00$ 88,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 104139$ 66,000.00$ 88,000.00$ - 0$ - 0$ - 0$ - 0$ - 0 114240$ 72,600.00$ 96,800.00$ - 0$ - 0$ - 0$ - 0$ - 0 124341$ 72,600.00$ 96,800.00$ - 0$ - 0$ - 0$ - 0$ - 0 134442$ 72,600.00$ 96,800.00$ - 0$ - 0$ - 0$ - 0$ - 0 144543$ 72,600.00$ 96,800.00$ - 0$ - 0$ - 0$ - 0$ - 0 154644$ 72,600.00$ 96,800.00$ - 0$ - 0$ - 0$ - 0$ - 0 164745$ 79,860.00$ 101,640.00$ - 0$ - 0$