The second, less-pleasant part involves projecting when you'll bid the world adieu. When it comes to life expectancy, both Kaye and Shelli Zasa, a financial advisor with Charter One Investments in Cleveland, recommend thinking long. Kaye, for example, assumes a 100-year life expectancy for his clients. Zasa also suggests looking at your family history and your own health habits to gauge your life expectancy. To get an idea of how these factors may affect your life expectancy, check out The Longevity Game at Northwestern Mutual Life's Web site.
Inflation is said to be a retiree's worst enemy.
Forget to account for inflation and you may be taking up panhandling, not pottery, during your retirement. It's therefore essential to make some assumptions about future inflation rates. Projecting your retirement living expenses is the toughest part. Ask yourself what type of lifestyle you want. Do a little dreaming.