Saturday, November 10, 2012

Retirement Planning Fantasies


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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