doubt on solution- CFAI EOC

[confused2010]

for solution to CFAI EOC question no 2,reading 10. expected portfolio return is taken as nominal and inflation is deducted to arreive at the real expected rate of return,however her required rate of return is taken as real return of 4.5%
when to adjust for inflation, when not to?

 

[confused2010]

anyone?

 

[Swaption11]

You shoud adjust her required spending by inflation and it would be greater than the calculated return on the portfolio just barely. They are doing it backwards from the way they usually do the calcs.