Are you guys including them entirely, only the difference with income or are you only putting the one time cash needs ? Get confused there…
only amount needed from portfolio.
So if life needs is 200k and salary income is 150k you only write 50k of liquidity constraints ?
yup. for the large one time payments due in a year or so … those are immediate liquidity needs and I just reduce investable assets by that amount then calculate the income need required by the fund (the portion of expenses not covered by income). We also gotta make sure the target value of the investment is reached at the end of the time horizon if its specified.
Did anyone see the BSAS Mock? They put all liquidity… bizarre
That is the reason why i ask the question… A lot of disparencies.
You should check to see if the expenses and savings objectives can be funded with after-tax current income. If they can, you can maybe mention that liquidity from the PF is not required to meet those expenses. If they can’t, it should be mentionned that liquidity from the PF will be required.
That’s how I plan to approach it.
Nevermind BSAS - I have a copy and did not even complete it after I noticed how bizarre and different it was as compared to the previous year CFA exams. Why waste time frustrating and confusing yourself with an exam from BSAS when you can find all the ACTUAL previous exams…
You guys do realize that there is no ONE way to write an IPS return objective, right?