NaviPlan - Case Study 1 - Cheung 2022
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York University *
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Course
2105
Subject
Information Systems
Date
Feb 20, 2024
Type
docx
Pages
4
Uploaded by AgentScience13466
Money Management Software
NaviPlan Case Study 1: Tony & Lorna Cheung
This case study is to develop your ability to use the NaviPlan software, by completing and presenting the clients’ retirement plan with difference scenarios. You will develop your presentation skills through role playing the clients meeting with the financial planner, investment specialist and risk advisor.
Objectives: After completing this case study activity, you will be able to:
Demonstrate your skills in using the NaviPlan software.
Analyze and evaluate the clients’ current financial situation.
Create optimal retirement plans for the clients with different scenarios.
Role-play the clients’ meeting with financial professionals.
Instruction:
1.
Read the following case study.
2.
Input all the information from the case study into the NaviPlan software. 3.
Analyze and evaluate the clients’ current financial situations for concerns and opportunities.
4.
Develop optimal clients’ retirement plans with two different types of scenarios.
5.
Present the clients’ retirement plans through role playing the client’s meeting with the financial planner, investment specialist, or risk advisor. Background Tony and Lorna Cheung are in their late fifties and are considering early retirement. They would like to find out if it is possible, and when is the earliest date that they can retire. They are both in excellent
health with an average life expectancy to age 95. The Cheungs has clear title to their home, which has a market value of $1,200,000. They are planning to sell their home and buy a condominium when they retire.
Contact Information
Gender:
Male
Female
First Name:
Tony
Lorna
Last Name:
Cheung
Cheung
Date of Birth
September 7, 1965
March 15, 1968
Work Phone #
778-532-1515
778-545-9895
Home Phone #
778-553-1215
778-553-1215
Email Address:
tcheung@rogers.com
lcheung@rogers.com
Home Address:
596 Lakeview Road
596 Lakeview Road
Vancouver, B.C. V5K 1M7
Vancouver, B.C. V5K 1M7
Retirement Goal
The Cheungs plans to retire on Vancouver Island in 2025. They estimated that they will require $90,000 per annum to cover their expenses during retirement. Tony and Lorna will receive the maximum CPP retirement benefit at age 65. They are also both
eligible for the maximum Old Age Security (OAS) at age 65.
Current Situation
Tony is the General Manager for La Scala restaurant with a salary of $75,000. In September, the restaurant will be closing due to net losses for the last three years. The company agreed to pay $100,000 for severance pay. Tony contributes $8,500 per year to his individual RRSP. Lorna works as an Accounts Payable Manager for a small company with a salary of $85,000. Her company does not have a pension plan. She contributes $7,500 per year to her individual RRSP. Annual Expenses
The Lorna and Tony has listed and added their total fixed expenses and discretionary expenses in the
following table below.
Registered Investment
Name
Amount
Asset Type Description Locked In
Tony
85,000
BMO Aggregate Bond Index ETF
Company Group RRSP
Yes
Tony
55,870
BMO Canada Dividend ETF
RRSP
No
Tony
15,000
BMO Blue Chip GIC
RRSP
No
Tony
20,654
BMO Canadian Market GIC
RRSP
No
Tony
7,589
iShares MSCI Emerging Markets ETF
RRSP
No
Tony
23,902
iShares Russell 2500 ETF
RRSP
No
Lorna
25,000
Royal Bank Canadian GIC
RRSP
No
Lorna
25,373
RBC Quant U.S. Dividend Leaders ETF
RRSP
No
Lorna
32,908
RBC Canadian Preferred Share ETF
RRSP
No
Lorna
12,434
RBC Short Term U.S. Corporate Bond ETF
RRSP
No
Registered Investment - TFSA
Name
Amount
Asset Type Description Tony
15,000
iShares Premium Money Market ETF
TFSA
Lorna
12,000
iShares Premium Money Market ETF
TFSA
General Issues to Consider
How should the Cheungs restructure their investments?
Would they be able to retire in 5 years?
Should they get critical illness insurance?
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Conclusion
After reviewing their investments and annual expenses, the Cheungs realize they may not be able to
retire in five years. The couple decided to contact their financial planner for advice and options.
They set up an appointment with their financial planner, investment consultant, risk advisor and
estate lawyer to discuss the different options available, and to help them plan for their retirement.