Why doesn’t implied assets increase? The question says that their retirement portfolio has increase dramatically prior to their retirement. Where in the CFAI book does it say that implied assets includes future income from work?
its there. implied assets is future employment income, like human capital. i had to look this one up too. i looked up implied assets in the index of the book talking about this
This question was a confidence killer for me. Its like they throw a dart at the index to pick questions
SkipE99 Wrote: ------------------------------------------------------- > its there. implied assets is future employment > income, like human capital. i had to look this one > up too. i looked up implied assets in the index of > the book talking about this Where in the index? Implied assets is not in the index. Can’t find it in the book…
hmmm. sorry dont have that book around me. if i recall it was right around the area they talk about human capital. this is net human capital or something like that. someone should be able to find it, but i remember thinking that i never saw this in cfai text until i dug around. its a random bolded blue word and they reference it for one or two sentences. sorry i can find tomorrow if no one else has
implied asset is in the reading 19 it is pv of future work income , it will be zero on the retirement day. So if you will retire , it will decrease to zero soon.
you should consider phisical and implied asset in IPS ,when you are young , implied asset is large so you can invest more in risky asset .