One thing you need to know is that in this area there is no cut and dried question and answer. There are no simple yes and/or no answers involved. There are many variables to take into consideration, which helps to explain the vast array of professionals available to assist you. There are CFP’s (Certified Financial Planners) and/or financial planners, investment counselors, CPA’s (Certified Public Accountants) and/or accountants, bankers, etc.

The determination of the proper amount of nest egg depends on each individual and/or family. One needs to ask themselves what their goals and accomplishments are upon reaching retirement, what type of lifestyle do they desire? What amount of traveling, if any, is desired? What amount of expenses need to be met before enjoying other areas, etc.?

An important point to emphasize in determining the proper nest egg amount, according to Dave Ormerod of Edward Jones, is “at a minimum, a retirement tool other than an employer-provided retirement plan is needed.” These tools include IRAs, dollar cost averaging (putting a fixed amount each month into stocks, bonds, mutual funds, etc.) and real estate — to name a few.

. One also needs to look at the possibility of long term health care expense, which may provide for some unexpected additional costs as one ages. With the population in general living longer than in previous generations, this coincides with an extension of Medicare benefits, Social Security, and the consequences of requiring investments extending over longer periods of time. This emphasizes the need to plan for the future.

According to Rich MacDuff at Dain Rauscher, it is “important that the client does not outlive their wealth.” Proper retirement planning and investing takes into consideration what current holdings the client has and what level of comfort they want to live at upon reaching retirement. Also of importance is having a variety of investment holdings — not putting all your funds into one area. This provides for additional safety. Of course, the higher payout an investment pays, the higher the risk. Determine what level of risk you are comfortable with to help your planning professional satisfy your needs better.

A useful tool used in the retirement and financial planning fields consists of a software technology known as Custom Portfolio Planner (CPP) which is based on the modern portfolio theory. This theory, centered on asset allocation, was developed by Nobel Prize winners in 1990. Some firms utilizing this software charge separately for this service, while others include it in the cost of their services. Check around for the firm and style you are most comfortable with.

Finally, some individuals and/or families plan on a retirement centered around taking multiple trips abroad while others plan on going down to the community center and experiencing some camaraderie while playing bingo. Goals and desires are individualistic, but must be known so that the professionals can help you end up a happy camper. Know yourself, your goals, wants, and means to arrive at satisfying results in the “nest egg” arena.

(Editor’s Note: Marie E. Buckner is a freelance writer. Contact her at (360) 613-1085.).