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Lia Misra is planning for her retirement. She guesses that by the time she retires, her mortgage will be paid off on her home. She expects she will pay $$600$ a month on food and that her medical expenses will be $$400$ a month. She also estimates that she will spend $$400$ a month on things that she enjoys like traveling, going to concerts, reading, and other similar activities. What step in the retirement planning process is Lia completing?

Multiple Choice

Analyzing her current assets and liabilities

Developing a balanced budget based on her retirement income

Evaluating her planned retirement income

Evaluating her retirement housing

Estimating her spending needs