标题: IPS - Time Horizon [打印本页] 作者: spartanag07 时间: 2013-4-8 14:41 标题: IPS - Time Horizon
Question:
John is 30 retiring at 60 (Life expectancy 90)
at 50 taking care of parents for 10 years.
Time Horizon is
A. Multi Stage
-3 stages; one 30 to 50, two 50-60, three 60-90 (two in pre retirement and one in retirement)
OR
b. Two stages
Retirement and Pre retirement???
Also if bequest/trust growth third stage of post retirement???作者: BC_MBA_student 时间: 2013-4-8 14:42
The sense I get is that it’s acceptable to divide further into sort of “sub stages” (ie 3 stages as in your example) if there is a material change that would cause a revisit to the IPS. But I *always* have issues with this too.作者: Siddimaula 时间: 2013-4-8 14:42
I would say A but I guess it would depend on what “taking care of parents” meant. Are they moving in with the guy (nothing much changes) or is he sending them $100K per year (big change)? I typically split time horizons where large changes in cash flow (in or out) occur.作者: mfleming1983 时间: 2013-4-8 14:42
i say multi stage 3 in total, 4 if there is a bequest/estate commitment,作者: Zestt 时间: 2013-4-8 14:43
I would go for 3 because you have different spending needs作者: dontknow1987 时间: 2013-4-8 14:43
Three to be safe, but it is dependent on the PORTFOLIO IMPLICATIONS of looking after the parents. If looking after parents will not impact portfolio, then two.
