Liquidity - IPS years

Palantir

Am I correct if I say that only include payments which are need to be made in next 6 months under liquidity section of individual's contrainst?

if mr. X has to make payment in 3 years for his kid, do we need to show that in liquidity section stating Y amount of money will be needed for college in 3 years

lcw77

skillionaire Wrote:
-------------------------------------------------------
> dspapo Wrote:
> --------------------------------------------------
> -----
> > what about an emergency reserve? i keep
> writing
> > down that the person needs 3-6 months expenses
> in
> > cash for emergencies, but i don't ever see it
> in
> > cfai's guideline answers. anyone have any
> > thoughts?
>
> I'm not gonna quantify it, but I will put
> "emergency cash" for most individual IPS.


Im quite sure that a 6 month reserve for living expenses is the standard.

thommo77

dspapo Wrote:
-------------------------------------------------------
> what about an emergency reserve? i keep writing
> down that the person needs 3-6 months expenses in
> cash for emergencies, but i don't ever see it in
> cfai's guideline answers. anyone have any
> thoughts?

I'm not gonna quantify it, but I will put "emergency cash" for most individual IPS.

Roflnadal

+1 Same Doubt!

bboo

thought you had to put down recurring and nonrecurring?

say you put down the recurring spending need AND the tuition 3 yrs out, think the graders will have a problem with that?

Analti_Calte

If it's three years out, wouldn't that indicate a new time horizon? If it's the following year (Mr. X needs 1M to buy a house in a year) then it would be liquidity. I thought the cutoff was within a year, because if it's within the next year then you're just going to sock away the cash you need in a risk-free asset until you need it. Other thoughts?

jmh530

yeah i do anything due in the next year under liquidity.