return requirement

mwvt, yes, living expenses = total spending in most of the ones i have seen unless otherwise explicitly stated. hez, I see outflows as different because it is a requirement that HAS to be addressed by the portfolio. i’m not sure about the extra $. i may be beating a dead horse here because this is a schweser question and i’m guessing if we see something like this on the test, it wouldn’t be left vague… but then again.

cfasf1 Wrote: ------------------------------------------------------- i’m guessing if we see something like this on the test, it wouldn’t be left vague… Agreed. CFAI wouldn’t put something like this on the test without given some sort of information on how to handle it.

I 'll go with you, don’t remember I have seen the same solution else where but i can’t remember which test. Also some time if they add inflation to the living expense, say 3 % we have to add them to PMT