Life-Cycle Investing

The Business Week article on retirement is interesting and it makes sense that people should have access to alternative forms of financial planning.

The hard part about the article is actually putting life-cycle investing to work in real life. Who has the ability to know what their income and consumption is going to look like for 30 years? It just seems like a nice theory that is unrealistic in practice.

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Certainly a reasonable concern. People are not expected to have a crystal ball that looks 30 years into the future.

There are very good software products available to help with the financial planning part of the process.

One that is highly recommended is here:

This is the version for individuals who want to take a "do it yourself approach."

You could also talk to your financial advisor to see whether he/she uses something like this.