Three Mistakes With Retirement Planning Assumptions

When you last did your projections for retirement through the tools offered from your 401(k) plan or the book your financial advisor put together, are you sure the assumptions that were made were explained to you clearly?    Or, did you challenge each assumption made within the financial plan to be certain that the assumptions matched your level of risk tolerance.   The assumptions made within your financial plan can be very conservative or very aggressive depending on your viewpoint about planning for your retirement.   Making assumptions is something we do every day in our lives.   Essentially, as assumption is nothing more than something taken for granted or accepted as true without proof.  In other words, it is belief without proof.   When it comes to your retirement, you need to ask about these three assumptions or your retirement plan may really be nothing more than a pipe dream. 1.) Inflation Assumption – Most financial plans give you or a financial advisor a ...

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