Individual Liquidity Constraints house, tiger, income, his

pawn

3 Questions:

1) assume some guy is retiring in 5 years

he has 80 million is horribly egotistical and needs 60 million in 5 years for a house, a tiger, and a spare room for Charile Sheen and pornstar entourage.

he also needs 1 million a year in retirement income.

Is his liquidity requrement

a) 60 million
b) 60 million + I million a year for retirement income


2) Same guy, needs house next this year, but a retirement income of a million a year in 5 years...


What is his liquidity requirement?



3) Same guy, no ego, all his stuff is paid for, retiring in 5 years. Still needs a mill a year to live


Does he have a liquididty requirement of 0 or does he have a liquidity requirement of a million a year starting in 5 years