Size of Asset Base Relative to Spending Needs

CFA Level III
#1

How in the world do we detect whether someone’s “asset base is large/small relative to spending needs”??? I’ve done plenty of mocks to notice that this is a common answer to IPS-style essay questions. Is there a specific rule of thumb to figure out of the asset base is large or small relative to spending needs?

#2

5%

#obviously

#3

Thanks! That’s what I thought but I wasn’t sure. There’s no need to be haughty with your hashtag though.

#4

5%???

I think Bill Bengen would have something to say about that…