CFAI AM 2014 Question 1B
The question is asking for liquidity requirement from the client’s portfolio for the coming year.
Relevant info, the clients (the Crusoes) will pay their mortgage of $25,000 and start a trust with $60,000 for their daughter’s upcoming education needs IN THE NEXT FEW WEEKS. Also, they are able to save $35,000 per year which are transferred directly into their investment portfolio and immediately invested in the existing asset allocation.
Obviously, $25,000 and $60,000 must be listed. I also listed $35,000 in savings, but apparently it should be excluded. Can anyone tell me why?
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