ll11

they are so inconsistent. in other exams they do mention the income shortfall!

also i have noticed something else. lets say someone wants to purchase a house immediately with a 200 k downpayment. they will not include it as part of liquidity , but just deduct it from investable assets.

yet, if the payment comes in later duruing the year, like 6 months after per say, they will include it.

is this a general rule that we can go by? if cash is needed immediately for a one time expense, it is not included as part of liquidity?

ll11

So:

- if it's a one-off payment in the next 12 months, deduct it from investable assets (no problem with that) and mention it as a liquidity requirement

- if it's an ongoing need for cash, don't mention it in the liquidity requirement?

Are you sure about the second point?

In the 2009 AM exam they mention the distributions from their portfolio to cover living expenses as a liquidity requirement. They also mention one-offs within 12 months (as per the first point)