9. Develop an Asset Allocation Plan

After you complete Step 8, you will have all the data you need to form a strategy:

• The monthly income goal ($7,500)

• The time frame (25 years)

• The monthly goal inflated forward 25 years (about $15,700)

• The ending balance ($3,760,000)

• The starting balance ($250,000)

• The value of the starting balance forward 25 years ($1,356,858)

• The gap between what you will have and what you will need ($2,403,142)

• How much you need to save annually to close the gap ($37,995).

The last step is to develop an asset allocation plan that has the highest probability of helping you achieve your goals. You’re asking yourself, “Now that I have a clear financial picture of my future, what investment strategy has the highest ...

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