The Analees’ pre-tax return objective is computed as follows:
|
Ongoing living expenses |
$75,000 |
|
Travel expenses |
$15,000 |
|
College Fund |
$20,000 |
|
Total |
$110,000 |
|
Portfolio Principal Value |
$3,000,000 |
|
Income Objective: |
(110,000 / 3,000,000) 3.67% |
|
Plus Inflation: |
+3.00% |
|
Total Return Objective: |
6.67% |
|
