sameeragarwal

ditto….although I do wrestle with it, I am convinced the following steps work:
Convert the case into a simple TVM problem–
1) First figure out n, PV, FV, PMT (ALL on after-tax basis) Details below.
2) Next compute i
3) Then Add inflation and management fees (multiplicative)
4) Optionally if pre-tax number is desired divide by (1 - tax%)
(i) PV is always net of any immediate disposals of cash / liabilities (credit card debt, house repair, downpay). Typically don’t include residence in PV
(ii) FV = PV usually due to clients’ bequest desire, then the required rate is simply PMT/PV. Things get complex if PV FV, e.g. (a) lump-sum needed to buy annuity (FV  PV), or (b) retiree with no charitable intention (FV