标题: Multiplicative vs. additive method for IPS [打印本页] 作者: prashantsahni 时间: 2013-4-8 20:56 标题: Multiplicative vs. additive method for IPS
What is the CFA preferred method? Does it really not make a difference which method is used, or do you get extra points for using one or the other?作者: kseniaru 时间: 2013-4-8 20:57
It doesn’t make a difference.作者: mamuka12 时间: 2013-4-8 20:57
(1+Spending)(1+inflation)(1+fee)-1 is the best measure of After tax return requirement.作者: Unforseen 时间: 2013-4-8 20:57
CFAI says either is ok. I always used multiplicative just to be safe because it’s more precise. Just pick a method and stick with it.作者: studyn 时间: 2013-4-8 20:58
either one of them is ok, but they recommend using multiplicative approach especially for calculating return for Foundations (to account for the impact of costs and inflation for long time horizons).
