Janice Jacobs is planning for her retirement. She knows what assets and liabilities she has now and expects to have in the future. She knows what her spending patterns are likely to be and adjusted them for inflation. She also has identified all of her sources of income after she retires. Now she is sitting down and planning her income and expenses each month. After she has finished this plan, she knows that she has enough income to cover her expected expenses and still have $200 extra each month for emergencies and other unplanned activities. Even with inflation, she thinks she can sustain this plan for approximately 30 years. What step in the retirement planning process is Janice completing?
A. Analyzing her current assets and liabilities
B. Estimating her spending needs
C. Evaluating her planned retirement income
D. Developing a balanced budget based in her retirement income
D. Developing a balanced budget based on her retirement income.
In this step, Janice is sitting down and planning her income and expenses each month. She is evaluating her expected income after she retires and has already accounted for inflation in adjusting her spending patterns. By ensuring that her income can cover her expected expenses and still have $200 extra each month for emergencies and other unplanned activities, Janice is developing a balanced budget based on her retirement income. This step helps her determine if her income will be sufficient to sustain her desired lifestyle for approximately 30 years.