I am not sure how much credit I would get on this one. I seem to have added too much info?

2008 exam AM Q1.C

This is the guideline answer:

Constraint Prepare the following constraints of the Carvalhos’ IPS. i. Liquidity - The Carvalhos need their investment portfolio to provide BRL55,000 for next year’s mortgage payment. ii. Time horizon - The Carvalhos have a long-term multi-stage time horizon. In the short term, they must pay living expenses and provide a home for their family. They may also have to pay tuition for their children. Their second stage is retirement, thirty years from now. ------------------------- My response: 1. Liquidity - They will need BRL255,000 for the down payment on a house and will receive BRL750,000 as 50% disbursement from trust. BRL55,000 will be needed for mortgage payment. 2. Time horizon - Long time horizon, multi-stage. 1st stage is now until 10 years when 2nd trust disbursement is received, then until age 60 when they will retire. The 3rd phase is retirement, another 20-25 years.