Retirement planners always arrange models. They take into account investments and diversification, along with outlay plans, and any number of probabilities. One is the Monte Carlo simulation, a well-known model used by investment advisers for this purpose.
But the usual investment planning fails to work in real life. For many reasons.
Obviously, a major financial market debacle is one. But other unforeseen events happen; such as illnesses, a job loss, or business failure. Unexpected educational expenses can crop up. The result of a lifetime of retirement planning is often just failure.
The solution is to be realistic. Be prepared to work at least part-time past what you had originally thought would have been retirement age.
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