Description: This paper is from Transactions of Society of Actuaries 1955 Volume 7, Number 17. The author discusses the advantages to management of preparing estimates of annual earnings early in the year, for planning and budgeting, deciding on changes to dividend scales, estimating earnings from interest, mortality, and expenses against expected, etc. The author lays out his method of forecasting based on gains and losses by source of earnings, using readily available data including various annual statement exhibits. The author notes that judgment is important as well as statistical analysis in making reasonable forecasts.