CFAI reading 8 Muellers' IPS

[archived_user]

Hello guys
I want you to check if my reasoning about the return objective is correct

1. there is no indication in the question thus it is for the next year
2. the payment for the college’s endowment fund is immediate so it will reduce the investable asset 550 000
3. their salary 100 000 is superior to their need 25 000 + 40 000

thus there is no calculation, they need only to protect their portfolio from inflation

 

[archived_user]

Sorry
their need are 40 000 - 25 000 =15 000
thus the return is 15 000/550 000 = 2.7% real AT
but in the CFAI solution there consider the needs are 75 000 adjusted for inflation, it is the first year after the retirement?

 

[archived_user]

Their salary is $100000 they save $25000 annually.
So they spend $75000 annually ….