Irene and Fred Buckley are age 63 and 66respectively. They have various pensionentitlements and assets. They figure they needabout $45,000 per year after-tax for their lifestyleexpenditures.They want to know if they have enoughresources. Because the Buckleys are alreadyretired and Irene is 63, their retirement planninghorizon for the purpose of this post-retirementincome plan is 27 years, calculated as (90 - 63). Inflation Protection• The amount of funds required each year will increase withinflation• However, the CPI measures the changes in the price of aspecific basket of goods on a national basis. This measuremay not be a good estimate of the increase in prices for aspecific individual or couple. So, it is desirable to be ableto take into account expected inflation for the client'slifestyle expendituresThe Buckleys figure that they would ideally like to have fullprotection from inflation, but they do not know what thatwould be. The CPI might increase by 3%, but their costs mightonly go up 2% or they might go up 4%. Who is to know?