Hey there!
Am mucking up the return requirement - cant think straight any more!
Shouldn't one add any after-tax salary less living expenses to investible assets for the return objective calculation ? I understand in most cases, after-tax or before-tax salary/income is always equal to living expenses, so there is no investible asset to earn on. But where after-tax salary exceeds living expenses, should it be added to the Investible Assets figure ?
2) all immediate spending and liquidity needs go in the numerator / Investible assets, for the required return calculation - correct ?
Thanks very much
Aaliya
Am mucking up the return requirement - cant think straight any more!
Shouldn't one add any after-tax salary less living expenses to investible assets for the return objective calculation ? I understand in most cases, after-tax or before-tax salary/income is always equal to living expenses, so there is no investible asset to earn on. But where after-tax salary exceeds living expenses, should it be added to the Investible Assets figure ?
2) all immediate spending and liquidity needs go in the numerator / Investible assets, for the required return calculation - correct ?
Thanks very much
Aaliya