Not exact matches
I learned
about the problem 14 years ago when I put up a post to a Motley Fool discussion board asking my fellow community members who were using a retirement calculator to plan their retirements whether the calculator should contain an
adjustment for the
valuation level that applied on the day the retirement was to begin.
I calculate total debt (of 5.5 B) would need to be reduced by
about 39 %, to limit net interest to 15 % of Op FCF — therefore, we'll include a 2.1 B (negative) debt
adjustment in our
valuation, plus a 336 M
adjustment for the net pension deficit.
With net interest expense now standing at
about 15 % of operating profit, there's no need for any debt
adjustment to my
valuation, positive or negative.
The TLIs
valuation reduces by
about $ 1.3 mio to reflect 3 subsequent policy maturities, increases by $ 2.8 mio to reflect premiums, and we then solve for an estimated $ 2.9 mio of LE
adjustments.
But I have never heard anyone get into what it is
about his long term
valuation adjustment to stock investing that is so objectionable to some.