lcai

ok, maybe I'm missing something here but wouldn't the return on the portfolio be subject to tax as well. My calculation for the expenses to be covered are the same as yours so i get:

After-tax income = $100,500 = ($150,000 * (1-0.33))
Living expenses = $100,000
medical expenses = $100,000
stipend = $50,000

required return = 149,500

but then I went further by dividing it by (1- 0.33) to get $223,134 so that my ....... oh b*ll*cks I see where my mistake is here. i was calculating the pre tax nominal rate of return.

Thanks guys