Application of Gordon's Constant-Growth Dividend Valuation Model to Estimating Retirement Funding Requirements (Manuscripts‪)‬

INTRODUCTION To estimate the accumulation needed at retirement to fund retirement income, typical deterministic planning models utilize discounted cash flow calculations incorporating actuarially projected life expectancies, estimates of future portfolio growth rates, and inflation projections. Such calculations are complex and often costly. To obtain such estimates some people seek advice from financial planners. Others may purchase financial software or use Internet computer models. These options entail costs, including commissions to planners, the purchase price of software, as well as an investment in time needed to understand the financial models. Also, there is a risk of making input errors that can lead to inaccurate results.