return objective

[Gersonides]

If a question asks you to formulate a return objective, do you need to include a numercal return objective or simply state the specific goal objectives?
In the IFT mock 1, there is a question where the client needs to support her son’s eduction and her father’s nursing home espenses. She would retire 20 years out. So this is a multi-stage horizon. I could establish a numerical return objective for the first 4 years, but there’s not enough info to move beyond that.
I thought I recalled reading that it was a requirement to state a numerical objective along with the stated objectives. In IFT’s answer, he does noyt have a numerical objective, but I wasted extra time on that question trying to compute the required return.
Any idea how this would show up on the actual exam?

 

[MrSmart]

Do both

 

[Gmax]

AM section is all about time management, so there is no time to do both…
i think if the question states “show your calculations” then you need to give them a number, otherwise the % number is not required.

 

[AlmostDoneIII]

Gmax wrote:
AM section is all about time management, so there is no time to do both…
i think if the question states “show your calculations” then you need to give them a number, otherwise the % number is not required.

you dare challenge mrsmart? SMH at you

 

[S666]

As I understand it, when asked for a return objective - that can be answered just in words. A return requirement needs calculations.

 

[S2000magician]

MrSmart wroteo both

Do not do both.
Formulating a return objective means writing out the words: cover expenses, maintain purchasing power, grow the portfolio, whatever.
If they want a calculation, they’ll tell you to do a calculation. If they don’t say, explicitly, to do the calculation, you’re wasting your time by doing it.