Schweser SS4, p313, this has got to be wrong? Answer C to the Example question… says can gift $2.5m-£1.85m to charity. SURELY NOT??? Is this not the amount of money they need to live on until they reach the 10th year? If they gave the remainder away, surely they’d run out of cash at th 10th year???
The paragraph underneath on Safety Reserve says they’d run out at age 100, but that doesn’t make sense? The table says they need $1.85m over the next 10 years doesn’t it?
Thank you for your help! Tell me am not going insane?