busprof

I agree w/sparty. Expenses that are that far out would only come into play if you have to set up an IRR calculation to get the return requirement. I vaguely remember a problem where the couple needed X dollars at retirement and, that same year, they would have to pay Y dollars for the kids’ education. So, the portfolio value at retirement would be grossed up by Y dollars, that is FV = (X+Y). PV = whatever the portfolio is worth today, PMT = net annual cash outflow excluding the kids’ education, n = # of years to retirement. Solve for i to get return requirement.