I have a very stupid question but my brain won’t let go of it - When calculating Year 1 (retirement cash flows) for Serra, why is the income from cash portfolio (100K) and income growth equity portfolio (3.4M) not considered ? It is considered in year 0 cash flows …is there something terribly that I am missing ?
Nevermind… I answered my Q… for some reason…I cant edit my post…
why do you adjust the req return for inflation when you already grossed up the amt he will need 800k grossed up to 832k 1.2mm grossed up to 1.248mm total of num 2.08mm then you divide that by 44mm get the 4.73% but you have to gross this up by the 4% inflation as well??