| It seems like every investment advisor and 401(k) | | | | ones ask questions that are more pertinent to your |
| company has been rolling out a new and complex | | | | current financial situation. |
| retirement planning tool every week while forgetting | | | | Merge Your Results |
| the need for a basic and simple retirement calculator. | | | | By looking carefully at the questions each calculator |
| It appears that whenever you go to a bank or financial | | | | asks you and how it arrives at certain conclusions, you |
| planning company's website, they're offering some kind | | | | can start to understand it better and even merge and |
| of new and simple retirement calculator. | | | | combine the different results. For example, one site |
| The idea is to be as precise as possible when helping | | | | might tell you to start saving 60 percent of your |
| you estimate the size of your nest egg, but so many | | | | income while another will advise you to start saving 30 |
| are getting lost in the numbers. | | | | percent. That's a big difference, but by understanding |
| And yet, despite their increasing sophistication, they're | | | | the results and how they were achieved, you can |
| still producing inaccurate results and diverging | | | | more likely find the balance. |
| responses. One site will give you one piece of advice | | | | You Want Features, Just Not a Laundry List |
| while another will tell you something completely | | | | Being able to customize a retirement calculator to your |
| different. | | | | exact financial and familial situation is great. However, |
| One may account for higher inflation rates with health | | | | with that personalization and customization comes |
| care (typically double the national standard) while | | | | complications and a loss of simplicity. The calculator at |
| another will not. | | | | choosetosave.org is powered by the Employee |
| And if you don't understand the results - or get the | | | | Benefits Research Institute. |
| right ones - it could put your retirement at risk. | | | | It allows you to input extra income sources and |
| Underestimating how much you need to save could | | | | potential expenses like travel or lifestyle choices that |
| leave you with a retirement shortfall, while | | | | could affect your savings needs. At the same time, it's |
| overestimating can cut into your money now - | | | | simple and easy to follow. |
| meaning you have to sacrifice expenses like college | | | | Consult With a Professional |
| tuition or extra payments on your mortgage. | | | | Yes, a financial advisor will charge you fees and |
| However, there is a way to get the most out of simple | | | | commissions, but if you're having doubts they can be |
| retirement calculator tools. To learn how, keep reading. | | | | your best bet. Most people wouldn't leave the fate of |
| Use Multiple Calculators | | | | a mysterious illness in the hands of WebMD (as helpful |
| Don't just depend on a single online retirement | | | | as it is), so why would you leave the fate of your |
| calculator to base your entire retirement future on. | | | | entire retirement in the hands of a simple retirement |
| Instead, try several and pay close attention to which | | | | calculator? |