When it comes to the matter of finances, common people prefer to seek advice of experienced financial planners. However, one does not have to go through the lengthy procedure of finding out the best or a reliable financial planner. All you need to do is to have a computer or any device (tablet, Smartphone, etc.) on which you can use the internet, internet connectivity and a little awareness. Nowadays, majority of people use Smartphones and laptops so that’s not an issue and talking about awareness we will impart you that right here in this blog.
So, now the process simmers down to one thing which is finding an online retirement tool that can make help you plan your retirement by computing the all the lengthy numbers and assumptions within no time.
The crux: Every tool in the market is a self-proclaimed one, so how will you pick out the best one. A tool that makes you understand the assumptions made while computing and allows you to change all these assumptions easily. As it is not possible for an individual to use every tool present out there in the market, I have picked up five of the best ones and described their USPs. Let’s find out!
- Fidelity myPlan Snapshot
The next in the list is the Fidelity myPlan Snapshot that allows its users to get to know about their retirement finances within no time. All it will ask is just some basic numbers, for instance, the age of the taxpayer, total investment portfolio and annual income. Using the data you submitted this tool generates a graphical picture of the assets that you have projected. The customers of this tool have the leverage to take a snapshot and fetch data from it and using this they can formulate quite a descriptive retirement plan.
- Personal Capital’s Retirement Planner
This is one of the newest retirement planners on board. It is launched by Personal Capital which is a part of their financial dashboard which is available for free. It offers several benefits and this is the reasons it is quite talked about nowadays. The first step is to add all the investments accounts into the financial dashboard, then after the Retirement Planner consumes all the data available and automatically runs around 5,000 investment scenarios. Further, you do not need to enter the date. The second step is to make sure that you have to look at the following assumptions (such as life expectancy, inflation, social security) that are easily altered. The final product is the result which is in the table format and in attractive graphs.
- Vanguard Retirement Nest Egg Calculator
The most important thing about this tool is that it is quite easy to use. The Vanguard Retirement Nest Egg calculator is a well-designed tool that helps the users to know the odds of their pension plan. All it asks for are four inputs that are:
- The years for your portfolio will be active
- Current balance of the portfolio
- Yearly expenditure
- Asset allocation.
For instance, a portfolio of $1,000,000 portfolio has a probability of 86% for earning $45,000 for a year in income for 30 years with a 60% allocation to stocks.
- Flexible Retirement Planner
There are people who like to work using quite in-depth details of matter and likewise they wish to plan their retirement as well. So, those who fall under this category can make use of Flexible Retirement Planner. This tool requires the user to enter inputs in detail. For example, you need to provide a complete portfolio of your taxable income, tax-deferred portfolio, and portfolio on which taxes are not levied (i.e., Roth accounts).
Along with this, the users can also configure sensitivity analysis of Monte Carlo simulator along with your portfolio’s asset allocation. The resultant of this tool is a graph of the fund values that is for future retirement and this also calculates the probability of success of your retirement plan.
- The Ultimate Retirement Calculator
Another one on this list is Ultimate Retirement Calculator, and as its name indicates this tool is an ultimate one that requires the users to enter typical data, savings for the retirement and yearly contributions. This is not it, as this tool offers several other things due to which this calculator stands apart. The first thing is that it allows the user to set aside a certain sum in case of unfortunate death of the person. This tool also enables the user to enter one-time advantages that they wish to receive, for instance, an inherited property. Further, the users also have the leverage to enter Social Security or pension income and set a yearly cost of living adjustment. You get to receive the results in a table format, and the users have the leverage to send this data in the form of an email to them for later analysis.
The Internet has empowered us and is helping us to be self-reliant, so why not use it to plan our living and retirement. These tools save a lot of time and are quite efficient to calculate these massive data. The do it with quite precision and there are no chances of errors. Adding on to this is their cost effectiveness that certainly saves the money spent on retirement planning.
I hope the above discussion proves to be helpful. Do write us your queries in the comments below, we will be happy to help!