By Stephen Hart
Comprehensive financial planning is becoming an integral part of planning for retirement success. These days many advisors offer “financial planning” free of charge. The formula seems pretty simple right?
“I need $XX to live on, inflation is X%, and I think my investments will grow at X%.”
Run those simple numbers through some rudimentary software and you can pretty easily create some very attractive graphs and cash flow charts. But the truth is, this approach, at its very best, is only an indication if you are somewhat close to meeting your retirement needs. It leaves off the importance of additional goals you have for retirement and in no way accounts for the variability of market returns.