Craig and Lyn Case Study

Case study Instructions
1) Based on the information provided in the case, begin filling in the provided
spreadsheet with the cash inflows and cash outflows the couple will incur into the
future. Utilize spreadsheet formulas like inflation into your calculations where
necessary.
2) Create a Net Worth statement based on the information provided
3) Create an assumptions tab in your spreadsheet where you demonstrate the
thought and analysis put into each section (i.e. insurance analysis, tax
assumptions, etc.). The purpose here is not to challenge your assumptions, but
to see the level of thought put into your model.
4) Make sure that you address all the areas of planning we have discussed in the
course (to date).
• Financial management (savings and debt considerations)
• Risk Management (insurance)
• Estate Planning (Wills/POA’s)
• Asset Management (investments and rental properties)
• Retirement Planning (pensions, RRIF withdrawals, etc)
• Education Planning (RESPs etc.)
• Tax management (deductions, employments expenses, RRSP
deductions, etc.).
• Debt Management
5) In addressing 4) above use the financial planning process as discussed in class
Overall:
Step 1: Engage (assume Letter of Engagement – completed)
Step 2: Data Gathering (complete – provided in case details)
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For each of the above areas use the following approach
Step 3: Analyze and Develop solutions
i. Assess the Client’s Current Situation (create projections/calculations if
necessary)
ii. Determine what they want (goal) or where they should be (e.g. retire at age 65
and cover 70% of pre-retirement expenses; children attend prestigious school)
iii. What is the gap
iv. Evaluate the results and provide options on how to close the gap
Note you can use cash flow projections or time value of money calculations using qualitative
reasoning to conduct your analysis for each section.
Step 4: Identify appropriate strategies (to close the gap). Provide recommendations WITH
REASONS WHY and any other advice.
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Step 5: Implement and Step 6: Monitor (ignore for this assignment)
6) You can work in groups of up to 4 students. Shared drives/Zoom may be utilized
to facilitate this.
• Ensure ALL names with student IDs are noted on 1st tab of spreadsheet
• Each student in group should submit the spreadsheet via Blackboard