From Schweser reading 18, q 6c: Calculate the rate of return on portfolio to meet combined expenses next year. Mrs Singh has lived comfortably and would need $100,000 next year after taxes. She would like to gift her 2 daughters $15,000 next year out of after tax return on the portfolio. She would like to be able to pay $200,000 for the younger daughters wedding in one year. Answer: After-tax living expenses and gifts over coming year total $130,000 Why is the $200,000 for the wedding not included as expenses/gifts?
Perhaps because it’s in the following year.