FIN 2063 – Group Case Assignment – Winter 2024 Term

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George Brown College Canada *

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2063

Subject

Finance

Date

Apr 3, 2024

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docx

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6

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INSURANCE IN FINANCIAL PLANNING CRN-55686-202302 – Group Case Assignment – Part I Submitted by: Hriddhi Thakurathi - 101422658 Deep Prajapati - 101402374
1. Cover Letter to Clients: Hriddhi Thakurathi Financial Advisor Dunder Mifflin Insurance Solutions 777 Augusta Avenue Toronto,ON M5G 2K2 2024-03-20 Jack and Jill 123 Main Street Toronto,ON M1J 3O4 Dear Jack and Jill, Subject: Summary of Financial Planning Recommendations I am pleased to present a summary of our findings and recommendations based on our thorough review of your financial situation and objectives. Your key goals include securing the financial future for your children, Travis and Tracey, ensuring adequate retirement savings, optimizing your risk management strategies, and minimizing tax liabilities. Our major findings indicate that you have a comprehensive insurance coverage in place, your retirement planning is on track with Canada Pension Plan (CPP) and Old Age Security (OAS) benefits, and your estate planning is well-structured with mirror wills and Powers of Attorney. However, we have identified that you have limited focus on tax planning, which presents an opportunity for potential optimization. To address these findings, we recommend three urgent actions. First, we suggest reviewing your existing life insurance coverage to ensure its adequacy in meeting your family's needs. Second, we encourage you to consider tax planning strategies to optimize your savings. Finally, we advise evaluating your investment portfolios to ensure proper diversification. We look forward to discussing these recommendations in detail and assisting you in achieving your financial goals. Sincerely, Hriddhi Thakurathi Financial Advisor Dunder Mifflin Insurance Solutions thakurathihriddhi0707@gmail.com
2.Risk Management Process Outline: 1. Risk Identification Example: We will conduct a comprehensive review of your financial situation, family dynamics, and lifestyle to identify potential risks that could impact your financial security and well-being. This may include risks such as premature death, disability, property damage, liability exposures, and potential long- term care needs for your family members. 2. Risk Assessment Example: For each identified risk, we will analyze the potential impact on your financial goals and the likelihood of occurrence. This will allow us to prioritize the risks and focus our mitigation efforts on the most critical areas. For instance, we may assess the probability and potential consequences of Jack or Jill becoming disabled and unable to work, or the impact of a natural disaster damaging your home. 3. Risk Mitigation Strategies Example: Based on the risk assessment, we will recommend appropriate risk management strategies to protect you and your family. This may include implementing insurance coverage for life, disability, property, and liability risks to transfer potential losses. We will also explore strategies to reduce the likelihood or severity of certain risks, such as implementing home security measures or maintaining a healthy lifestyle. 4. Implementation and Monitoring Example: Once the risk management strategies are in place, we will work with you to ensure they are properly implemented and maintained. This may involve regularly reviewing your insurance policies, updating coverage as needed, and adjusting your investment portfolio to align with your evolving risk tolerance and financial goals. We will also monitor any changes in your personal or financial circumstances that may require modifications to your risk management plan. 5. Ongoing Review and Adjustment Example: As your life and financial situation evolve, we will periodically review your risk management strategies to ensure they continue to meet your needs. This may involve reassessing your risk profile, evaluating the effectiveness of your current risk management measures, and making any necessary adjustments to your insurance coverage, investment strategies, or other risk mitigation tactics. By following this comprehensive risk management process, we can help you and your family identify, assess, and effectively manage the various risks you may face, ensuring your financial security and peace of mind. Please let me know if you have any questions or require further clarification on any aspect of this risk management approach.
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