Retirement Needs Analysis

Free CFP Exam lesson in Retirement Savings and Income Planning. 14 min read, ~2,147 words.

Replacement ratio (70-80%) is a quick estimate; the expense method builds a precise budget, use whichever the exam scenario provides. 4% rule withdraws 4% of the initial portfolio balance, then adjusts that dollar amount for inflation each year, not 4% of the current balance. Capital preservation keeps principal intact for...