IPS is too hard for CFAI to handle conclusion, withdrawal, house, adjusted

cfalevel2011

I was just working through 2007 AM again, the first question to do with the Ingrams.

So many issues here:
- we are working to a 35 year timeframe, but if you account for the initial $200k withdrawal there are 36 annual living expenses withdrawls, not 35.
- the first year's payment of $205k gets adjusted for inflation twice
- donating their house to a local park is a unique circumstance, but donating $2m to a charity isn't

I know these have all been discussed at length, but the conclusion I draw is that the Institute is too incompetent to set correct and consistent IPS questions. What about the return calculation consistencies between years? Hello! How do they screw that up?

If CFAI can't get it's act together wrt IPS questions, it should just leave it out of the exam. Seriously, it makes a mockery of all the hours we spend preparing for this exam when they roll out the dross that appears every LIII exam for IPS.

Just let it go CFAI, please.


ok, end of vent

Windjam

Thanks AMC. I'm really quite pissed about this and will write to them asking them wtf are they doing (once results are out and if I pass! hah!) with IPS. I know it won't do much good but it'll make me feel better.

ll11

newsuper,

CFAI is now big and a little bit bureaucratic. Hope you will pass & improve it !

former

nothing new newsuper, play the game and end the pain in two weeks.

skycfa

completely agree with newsuper- I just did that q and had same questions. Any strategies going forward ?