The return objective answer says “maintain real value of asset”
i don’t see this in the text so either i’m completely blind or the answer assumes it?! do we always assume maintain real value of asset? I thought that would hamper risk tolerance??
Not sure about you, but as an individual, I sure would like to maintain my real value! I think it’s safe to assume unless it states to spend down the portfolio. Which I can’t really think of a valid reason as it creates added shortfall risk. Even if projected to die, you could end up living longer.
Not sure about you, but as an individual, I sure would like to maintain my real value! I think it’s safe to assume unless it states to spend down the portfolio. Which I can’t really think of a valid reason as it creates added shortfall risk. Even if projected to die, you could end up living longer.