Time Horizon of An Individual

This is another one that’s confused me due to inconsistancies in the answers.

I have two scenarious here:

  1. A couple are saving for their son’s university education. The fees will end when they are in retirement. Is this two stage or three stage? Work - Retirement or Work - Retirement paying fees - Retirement paying no fees. Some have the first and others the second. I would have thought any substancial outflow should be factored into the time horizon.

  2. A lady has received a good package due $750k (3 years salary) due to a takeover and wants to travel a bit before finding new work. SHe is confident she can find new work at a higher salary but wants to travel. Is this two or three stage? Work-Retirement. Travel-Work-Retirement? I said the later but apparently it’s wrong.


Cheers for any help.

i dont think CFAI will judge wheather you put down 2, or 3.

as long you you refer to multi stage when in fact it is mult stage, you get full credit.

okay let’s hope so - i hate these ambiguities all over the sylabus on this stuff…