In creating a retirement plan, the author recommends that each individual starts with "an estimate of monthly or annual spending in the first year in retirement. After that the length of retirement must be estimated. Then the spending estimate should be adjusted for inflation over the length of retirement. Finally, an estimated investment return is used to estimate how much money should be accumulated at the start of retirement" (p. 27).
The author suggested certain steps to ensure a more accurate forecast: "count on inflation . . . key issue is which inflation rate to use . . . don't underestimate longevity . . . don't overlook all possible income sources . . . make more than one estimate . . . check the numbers regularly" (p. 39).
Although the book covers other topics, such as social security, trusts, and IRAs, I will reserve them for future postings.
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