Retirement Planning Guidebook Chapters 2 & 3
Chapters 2 and 3 focus on more definitions, discussing retirement risks and retirement income, including some broad preparedness activities. What I found interesting was my longevity risk (the book included a resource to see your own probability of demise at a certain point) and that I would need to change my current thought of how long my investments should last. I should add an extra 5-10 years! I also need a different model for projected expenses. At this time, I just assumed all items would go up the same amount - the inflation rate. However, healthcare and housing around healthcare (CCRCs, nursing homes, etc) are going up much faster than inflation, so by the time I need them, my investments may not have kept up. I imagine the other items that won't go up as much as inflation (electronic equipment) will be enough to make up for the healthcare costs. The book also talks about the "funded ratio", essentially how much have you already saved up against your assumed expe...