Practice Problems CFA Reading #8: Question 13-B Time Horizon

CFA Level III Portfolio Management
#1

According to the solutions this is a two-stage time horizon:

  • The first stage is the next 18 years (before retirement)

  • The second stage begins with their retirement and the university education years of their children.

What about the years during their retirement, but after the university education years of their children?

Should this not be a three-stage time horizon? Please state your opinion.

#2

Yes it could go both ways. However the key over here is that they have retired and hence only expenses will prevail. Hence it is two staged.