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Personal Financial Planning
21. CHAPTER 15: INTRODUCTION TO RETIREMENT PLANNING/Capital Needs Analysis
21. CHAPTER 15: INTRODUCTION TO RETIREMENT PLANNING Illustration
Syllabus Slides

Capital Needs Analysis

01.Core Concepts

• Pure annuity model—retirement account has a zero balance at the end of life expectancy • Capital preservation model—retirement account at the end of life expectancy is equal to the account balance at the beginning of retirement • Purchasing power preservation model—retirement account at the end of the life expectancy has the same purchasing power as the account balance at the beginning of retirement