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Endnotes

1.These inflation rates are calculated using the Consumer Price Index.
2.This process is particularly accurate for typical cases. Investors planning to retire very soon typically have already accumulated much wealth. Their annual contributions are small relative to their current wealth. However, an investor who plans to retire soon and has no wealth would not be a typical case. People with many years until retirement typically have a low amount of wealth. The estimates for an atypical case will not be as accurate.
3.Edwin Elton, Martin Gruber, George Comer, and Kai Li, 2002, “Spiders: Where Are the Bugs?” Journal of Business, 75(3).



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