Hi all - I’ve got a Kaplan question that includes the asset base from 401k pension portfolio for calculating next years requires investment income, even though the individual not scheduled to retire to 25 years. I assumed that income would not be available until retirement and thus excluded the pension asset from investable base.
thanks in advance, and good luck to all candidates on Saturday
Yes, exclude from the investable base / traditional balance sheet, but include pension assets when asked to prepare the holistic balance sheet.
thank you, Scorcerer but unfortunately that’s not how Kaplan calculate. Ref Q2 volume 2 exam 3 morning, they use the return from a pension investment to reduce the required return on the asset base, but I assumed that income would not be usable until retirement (25 years away)…
If vested, might be included in TB as well. Otherwise, this is correct.
gents - thanks, but it’s not a issue between holistic vs traditional assets. It is a traditional balance sheet and the income is coming from a 401k plan i.e. pension is an investable asset delivering income b4 retirement … thank u