Michael and Marry are a married couple. They come to you for some financial advice. They are mostly concerned about accumulating sufficient wealth for their retirement, while at the same time living a relatively comfortable life and providing the highest possible education for their two sons. Michael and Marry own an organic health food store in South Yarra. The business is set up as a partnership. Although their revenues are relatively high at the moment, they are currently managing to operate the business without the help of any additional employees. Although both Marry and Michael are partners (and therefore owners of the shop), Michael is taking all responsibilities in terms of operating the business himself. Marry looks after the house and their two children. She feels that if Michael was not around, she would need to close the shop as she doesn't feel capable of running it herself. After conducting in-depth interviews with the couple you derive the following information: 1. Expenses Mortgage payments (see following page) 28,700 Rates 2,000 Household (food, clothes) 49,000 Utilities (telephone, electricity, gas, water) 7,000 Car running expenses 3,000 Entertainment 15,500 Annual holidays 10,000 Work related 3,000 2. Assets and liabilities – expected as at 30 September 2015: Assets: Item Cost and year of purchase Expected value - 30.9.2015 Family home $580,000 March 2003 $700,000 Cars (2 vehicles) $100,000 House contents $90,000 $100,000 Shareholding Woolworths - 1,000 shares $8,000 – March 2001 $34,000 Incitec Pivot - 15,000 shares Westpac Bank - 650 shares $93,300 - February 2008 $15,184 - November 2010 $46,000 $20,000 Savings account with Westpac Bank $200,000 Superannuation -conservative fund $250,000 Superannuation -conservative fund $50,000 Liabilities: Item Amount outstanding Annual repayments – includes principle and interest Interest rate House mortgage -20 year $310,000 $28,700 6.5% p.a. Credit Card $8,000 - 18.75% The couple's two sons are expected to start school when they turn 6. Their older son (Frank) is currently 5 years old, while their younger son (James) is currently 3 years old. You estimate that the cost of schooling at primary school level (first 6 years of schooling) will be $10,000 pa. per child, whilst the cost of schooling at secondary level (further 6 years) will be $20,000 pa. per child. In addition to providing for their schooling, the couple also would like to be able to provide an allowance for each child between the ages of 18-25 of $10,000 pa. per child