Implied assets / implied liabilities

Just doing Level III 2009 AM paper. One of the questions (q2) asks about whether an individuals implied assets and implied liabilities have gone up or down.

Is this something that has been dropped from the curriculum since 2009, because I have not come accross it in my studies!?

Sorry for the double post, I have developed the shakes over the last few days due to nerves and can’t control my hands barely at all

It’s just the pv of your future liabilities (expenses) and assets (income).

E.g when you retire your implied assets drop to zero -> as no human capital anymore. Your implied liabilities are highest at the beginning of ritirement and the decrease.

Rereading the question: for answering i and ii) you just need to know that they are retired since 5 years. Risk tolerance has deals with the other part (higher return than expected).

CFAI loves this obscure wording game. it’s really a dis-service to all candidates.

horizon matching… combination matching… IT’S THE SAME THING, WHY CALL IT MULTIPLE NAMES!!!

^ haha big time! horizon matching starts with cf matching and end with duration matching & pmts at initial years.