When it comes to saving for retirement, maybe you've done everything right. You started early, maxed out your 401(k) plan, invested in a diversified portfolio and avoided costly mistakes, such as cashing out your retirement plan. Fantastic. But now comes the hard part: making sure you don't outlive your money.
Michael Parker, a 46-year-old sales executive and his wife Sandra, a 43-year-old nurse, live in Boise, Idaho. They are planning to pay for their children's college education and are reviewing their retirement needs, savings goals, and investment strategy. Their present concern is whether they will be facing a retirement shortfall.