COST OF LIVING MODULE

         This module takes you through a fairly exhaustive routine to input 
your cost of living in today's dollars. During calculations the program 
assumes that all income above this amount goes into savings and begins to 
draw interest. So don't fool yourself, be sure you have described a budget 
that you can live within. This is probably the most common and most serious 
mistake made in planning a retirement. 

         Expenses not subject to inflation are identified in this module so 
that future years livng cost are not pushed unrealistically high by inflation. 
Planned major expenses after retirement are provided for in this module as are 
planned cash collections which you may be counting on. It is recommended that 
at least one large contingency expense be entered into some future year. 

         Other income such as a spouse's pension may be totaled and added into 
this module along with the level in percent with which that income will match 
inflation. 

         If you feel that your costs of living will decline as you get older 
you can adjust for that amount in today's dollars. The reduction will start in 
the year you become, or would have become, 70 years old.