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Your retired client has accumulated investment and retirement assets totaling $5,233,000 and is happy with an after-tax lifestyle of $255,000 a year. He is


 

Your retired client has accumulated investment and retirement assets totaling $5,233,000 and is happy with an after-tax lifestyle of $255,000 a year. He is going to spend this amount every year forever. Leaving aside issues of inflation, what should his after-tax current yield be to covers his cost of living?

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