Monitoring and Rebalancing Ch 31 = chg in investor circumstances

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