Stalla - Private Wealth Management

The sample IPS on Page 24 of the study guide (for the Tom Thompson example) shows that the after tax salary is $3,500,000. How did they get this figure? He is expected to earn a pre-tax salary of $1,500,000 for the next 3 years and the applicable tax rate is 30%. So how did they get $3,500,000? shouldn’t it be (1,500,000*0.7) x 3 = $3,150,000? What did I miss? Thanks!

I think it’s a typo. I think its just 3,000,000 If you read below it says “and generate $3,000,000 of living expenses…”

Actually I don’t know now that i look at it again b/c the math works with 3,500,000…weird