mar350

Yes the formula above appears correct - "PV of earned income plus social security plus retirement benefits" - my only pause here is that I could swear I saw a suggested answer once that suggested on the day of your retirement all your wealth was in financial assets and you no longer had "implicit" or human capital. But this is exactly the kind of nuance not always well defined in the curriculum that CFA used to thin the herd - frankly from a prospective basis I an see calling pensions and soc sec human capital perhaps before retirement but at retirement to me the character more closely matches a financial asset (but be forewarned this I am sure is not CFAs stance).