Avoiding the Common Mistakes
The mathematics behind retirement calculations may give them the aura of a science, but retirement planning is unquestionably an art. The purpose of doing the calculations is to decide what you can do today to make your later years more financially secure. No matter what type of calculator you use, your results will be estimates, not bankable facts. Make your estimates as accurate as possible by avoiding these five basic planning errors.
Making Unreasonable Assumptions for Inflation
Assume 4 percent inflation when you do your calculations, but keep in mind that actual inflation may be much different. Inflation affects the cost of what you buy as well as the annual cost-of-living increases you’ll see in your Social ...