The best laid plans of mice and men often go awry, as the poet Robert Burns famously reminded us.
And nowhere is this more true than when planning for retirement, which can involve forecasts for the subsequent 40 years. Even if you have a well-crafted financial plan (a big “if”), and even if you follow its recommendations to the letter (an even bigger “if”), you can still fall far short of the portfolio size you have determined is necessary to retire.
The culprit, of course, is how the markets behave along the way. New research has come up with some fascinating strategies for dealing with that uncertainty.