Figure 8 shows that the moving average range narrows over time. Appendix 2 contains a table of long-term moving averages since 1947. Understanding the nest egg calculation is difficult. There are many variables that can affect the outcome of the calculation. Investment horizon, interest rates, withdrawal needs, and inflation all affect the value of the nest egg.
Retirees face many complicated choices in deciding how to spend their nest egg.
Many resources are available to retirees or those planning for their retirement. Financial planners and other investment professionals can help explain the process and establish a strategic plan. The internet, books, and magazines can help any retiree brave enough to try planning on their own. Trends in interest and inflation rates and long-term withdrawal needs greatly affect the value of the nest egg and warrant a conservative planning approach to ensure success.