RETIREMENT PLANNING Bob Davidson is a 46-year-old
tenured professor of marketing at a small New England
business school. He has a daughter, Sue, age 6, and a wife,
Margaret, age 40. Margaret is a potter, a vocation from which
she earns no appreciable income. Before she was married and
for the first few years of her marriage to Bob (she was
married once previously), she worked at a variety of jobs,
mostly involving software programming and customer
support. Bob
s grandfather died at age 42; Bob
s father
�
�
died in 1980 at the age of 58. Both died from cancer,
although unrelated instances of that disease. Bob
s health
�
has been excellent; he is an active runner and skier. There are
no inherited diseases in the family with the exception of
glaucoma. Bob
s most recent serum cholesterol count was
�
190. Bob
s salary from the school where he works consists
�
of a nine-month salary (currently $95,000), on which the
school pays an additional 10 percent into a retirement fund.
He also regularly receives support for his research, which
consists of an additional two-ninths of his regular salary,
although the college does not pay retirement benefits on that
portion of his income. (Research support is additional
income; it is not intended to cover the costs of research.)
Over the 12 years he has been at the college his salary has
