mp3bu

I really struggle with lining the cash flows up.
Do they typically take out the first years living expenses right away from investable assets? I never remember to do this and it always haunts me.

sabre

Can I join the club?
I ALWAYS miss at least one step while trying to calculate the required rate of return… always!

cfalevel2011

Scenario: Compute BEFORE TAX Return objective for 1st year of retirement, starting in 1 year from Today.
In order to determine the portfolio base at the end of this year/start of next year, we would still have to deduct after-tax expenses.
Then Return would be: {After tax Expenses/Portfolio Value at Start of year} / (1-T), then include inflation.
Does this make sense?

brazilatz

I probably don’t mind chairing this ‘Didn’t get a single return calculation correct’ committee.
But it hardly bothers me now, as I have too much to worry about and focus on rest of the stuff.

jcole21

I was told that they will accept different answers as long as it makes sense. It might be the case for the IPS calculations as long as you state your assumptions.