CFA CFA Level 3 Monitoring and Rebalancing Ch 31 = chg in investor circumstances

Monitoring and Rebalancing Ch 31 = chg in investor circumstances

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    • adossa3
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      Ch 31 – Solution to Q3 A

      They say in the Claire Wisman question:

      Retirement portfolio$6,185,967 = $1,343,000(1.063)25

      [6.3% is the after-tax return assuming the portfolio makes bw 8-10% pa]

      Retirement spending$400,000

      Spending rate 6.47% = $400,000/$6,185,967

      This 6.47% is an after-tax spending need, isnt it ? as the 400,000 annual retirement expense is from the after-tax income generated from the investment portfolio ?

      Thanks very much

    • hairyfairy
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      That should be correct. I haven’t seen the question yet so I haven’t any other context though.

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