When one estimates retirement needs,one start with a projection of expenses stated in current dollars.

Question

Quizplus · Accepted Answer

When estimating retirement needs, one should start with a projection of expenses stated in current dollars. This is because the cost of living and expenses will likely increase over time due to inflation, so projecting expenses in current dollars allows for adjustments to be made for inflation over time.

When One Estimates Retirement Needs,one Start with a Projection of Expenses