Retirement planning by advisers is always arranged with models. They take into account investments and their diversification, along with outlay planning, and any number of possibilities. The Monte Carlo simulation is a well-known model used by investment advisers for this purpose.
But this investment planning fails to work in real life for any number of reasons. Obviously, a major financial market debacle would be one. But other unforeseen events are bound to happen; such as illnesses, a loss of a job or business. Then unexpected educational expenses may crop up. The result of a lifetime of retirement planning is often failure.
The solution? Be realistic. Have an anchor for your future, just in case. Be prepared to work at least part-time past what you had originally thought would have been retirement age.
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