Living expense shortfall considered liquidity req?

If you look at EOC 13 R 8… the guy has after tax salary of 48k and living expenses of 74k… Why isnt the shortfall considered a liquidity req. if they are clearly covering the difference from portfolio withdrawals?

Seems to me that it should be.

I can probably look at the question tomorrow and give an informed opinion on it.

48 - 74 = 26K - is from NEXT year onwards after the portfolio is established for the next 18 years. So it is NOT a liquidity requirement. It is a return requirement.

However the 50000 to be spent now out of their net investable assets to establish the portfolio would be a liquidity requirement.

I don’t see how it’s different from the 2015 exam question 7D… which includes living expenses