Reference no: EM132586413

FINA 701 Estate Planning and Risk Management Assignment - Centennial College, Canada

Title - The Six Step Planning Process related to Risk Management

Pick a young married couple of your choice (let's call them John 40, and Mary 38) with two small children ages 3 and 5 and go through the six step planning process with them.

You need to find out as much detail as possible about them and include it in your essay, including: what kind of income and savings they have. How much they owe for mortgage, line of credit, student loan, credit card etc and how much assets they own.

Make John the breadwinner and Mary stay at home mom who will take care of the kids.

What are their needs for Risk Management (insurance)? Because John is the only person working outside the home, what will happen to the family if John dies today? How much insurance they need? Expect that the children need taking care of until they finish university at age 22. You need to do an insurance Needs Analysis and come up with exact dollar amounts as to how much insurance they need. (Hint: Insurance Needs Analysis is dependent on their income and expenses and future needs therefore you need to choose their income and needs such that your Needs Analysis is not too complicated).

In each step you must have at least one important OBJECTIVE and clarify how you achieved it. You are trying to answer ONE QUESTION in each step and each question starts with a "How". For example: How do you establish client-planner engagement with Mary and John?