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The Continuing “Income Replacement Rate” Debate

When planning retirement finances, the question of how much is needed to ensure a comfortable existence always seems to generate a lot of discussion. Beginning with Social Security as a base, the question becomes what other sources of income does one need to offset one’s pre-retirement cash flow? One of the more popular lines of thought as that you need to ensure that you are attaining an income level of at least 70% of where you were pre-retirement, but that’s where the debate comes in. Professor Laurence J. Kotlikoff, provides some thought-provoking comments on why this rate is actually dangerously low. Read his post here… 


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