Q: My wife and I have asked our financial adviser how much money we can expect to have monthly at retirement from our savings, and have not received even a clue from him. Instead, he asks us what we'll need or want. That's hard for us to answer. The only conclusion I reach is that it's easier for him to figure out how to come up with the total we tell him than to figure out what we can get from what we have. Any thoughts?

A: Considering retirement planning is based on individual circumstances and not rules of thumb, your adviser actually asks a very good question.

If your needs are modest, you may be able to invest more conservatively, take fewer risks and still achieve your goals.

Having a clear goal, including the rate of return you need to achieve, is the first step toward a successful retirement investment strategy. Sadly, I've met many retirees who've jeopardized their standard of living by taking unnecessary risks.

Figuring out what how much money you'll need should not be that difficult. The best way to start is to keep track of current expenses.

Next, factor in inflation (as a rule of thumb, expect to spend about 3 percent more each year to maintain the same standard of living). Then add enough for "non-recurring" or special items, such as replacing the car in a few years or taking the children on a family vacation. Make sure you also have a cushion for unexpected expenses, such as medical or repair bills.

As to how much income you can reasonably generate from your savings, assuming a 30-year retirement and a balanced investment approach, I sought the opinion of Harold Evensky, a respected certified financial planner in Coral Gables, Fla. Continued...