I am reviving this thread to see if anyone has questioned this example this year. it’s the exact same example in 2010 and 2011 textbook.
p130 “her base salary of 500k, inflation protected, is sufficient to support her present lifestyle but can no longer generate any excess for savings”. I would assuming 500K is pretax income. and hence her current expense level is 500k*(1-0.35)…but it seems CFAI is computing her living expenses based on 500k……any thought? |