I am getting confused on when we should deduct desired expenses from the investable portfolio.
In example 2 in the schweser book 1, dubois has just retired and has 2M$ in her portfolio and she would like to spend 60,000$ in her first retirement year and provide 30,000 next year for her son.
Doesn’t this mean that the 60,000$ that she will be spent this year should be deducted from her investable portfolio (2M$) when calculating the return over the coming year?
In the shweser book they said the return over the next year is: (30,000+60,000)/2M
I would appreciate your help!