Return requirement vs Return objective. Any difference?

[Thiru Cumaran]

I wouldn’t think so. at the end of the day, the return objective would be the return that the client requires (unless you’re trying to jack up investment fees, in which case, you’d have to include the percentage increase of your fees! kidding )

 

[olivia_x]

they sound same to me at least..Thoughts?

 

[waynelee106]

Think of return objective as the qualitative objective of the individual while the requirement is the quantitative objective to calculate the return.

 

[jamespeer]

In questions you’re normally asked to “state” the return ‘objective’ - worded description. You’re usually asked to “calculate” the return ‘requirement’ eg After-Tax Nominal - numeric, show your calculations. Even when you’re asked for the worded description, no harm in including the numbers (not full calculation unless you’re asked to) but “they need $50,000 annually after-tax adjusted for ongoing inflation” or “5% Real After-Tax”.

 

[S666]

Yeah return objective is stated in words, return requirement stated with numbers….that’s how I understand it.