Time horizon and number of stages only, college, example, however

DoubleDip

while this constraint should be really easy to judge, it seems as though there is no consistency.... Lets say someone is 40, plans to pay for college for kids in 18 years, and retire when they enter college.... To me that is 3 distinct stages.... 1 is 18 years until college, then 4 years of college, then retirement.... however on 2004 Mock they say only 2 stages of time until retirement and then retirement while kids are in school..

Schweser usually will say 2 stages for this example, but will also have in the answer that there is a possible 3rd stage of paying for kids college...

my question is what would you write for an answer to something like this... do we count the time in college as an actual hard stage.... or do you just say it is really only 2 stages with one of them containing the kids college expense...

dyga

I think you should write:

<<
Multi-Stage Long Term
First Stage: 18 years to retirement
Second Stage: Retirement to Life Expectancy
Another sub-stage of 2nd Stage could have been included up to when the kids have ended their university years (given the parents supports financially the kids while at uni)
>>