Retirement
planners use dubious assumed models. They take into account
investments, forms of diversification, along with outlay plans, and a
number of probabilities. One may be Monte Carlo simulation, a
well-known model used by investment advisers for this purpose.
But
such investment planning fails to work for many reasons.
A
major financial market meltdown is one. And other unforeseen events
happen; illness, a job loss, business failure, unexpected
educational expenses. The result of a lifetime of retirement planning
is often 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.
(See the Earl J. Weinreb NewsHole® comments
and @BusinessNewshole tweets.)
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