Required return for return objective

[KSTHANE]

Do you always incorporate spending needs for both the primary and secondary goal? For example, if someone might quit their job (without indicating at all how likely that might be) which would entail more expense do you calculate a return objective with those expenses?

 

[varunvajpayee]

Portfolio’s return should always cover the living expenses but liquidity needs are directly deducted from the portfolio amount.

 

[S666]

I would calculate the return requirement for the situation “as is”, which in this case would be if they remained in their job.