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Living expenses + Non tax deductible medical expenses + Stipend to son = $250,000
After-tax Income = $150,000 * (1-33%) = $100,500
Net Expense = 149,000
After-tax real return required= 149,000/5m = 2.99
After-tax nominal return required = (1.0299)(1.02) - 1 = 5.1%

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