I'd get a copy of Scott Burns book, spend to the end. He goes over the 'phases' of retirement..where you spend more in the first decade ...then gradually spend less. Basically, the older you get, the less you are able to get out and spend money.I think future inflation is going to be higher, but today, it's a couple percent. Each year the utilities ratchet up. Water bill, gas bill, elec bill. Worse, they keep adding 'fees'.....same for the cell bill which is 25% taxes and fees..and the cable FIOS bill..same thing...25% taxes and the towns keep adding more and more. you can never tell with food....thanks to Owe-bama and the insane bio-fuel mandates it's gone up 50% in a few years. My taxes on the house just took a jump....real estate assessments went up.Worse, typically yields on bonds and CDs lag inflation by a percent or more as inflation climbs...so you are always behind.....You're lucky to get 1 or 1.5% return on investments above inflation. So...short answer....it's nearly impossible to stick in accurate numbers.I usually figured, when I was doing this exercise, that my return would be 2% more than inflation.....and that my expenses would rise with inflation. t.
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