Retirement Planning Software Guide

Posted by Leslie Sumpter

Although retirement may seem a distant future, it is better to plan it and save for it when you are young. However, it is impossible to do so without certain calculations: how much money you need after you retire, how much you can and have to save up on a regular basis, what you can get from your social security benefits, how inflation can affect your financial situation, etc. Here, retirement planning software would be of great help.

Nowadays there are quite many retirement planning tools, some Pretty Litter available online under various conditions, more So, which of them to choose? Here is a review of some of these tools from

1) Retirement Planning Software-Personal Edition by Torrid Technologies. This tool is suitable for couples and individuals, and can be used both on PC and Mac. When using it, you can enter a lot of variables to make the calculations more precise, and change them to see what would happen if, say, your income suddenly grows or drops. After processing your data, this program provides you with colorful charts and drafts to show how you are progressing. Many customers claim that this tool is easy to use, and that the results are given in simple terms understood by non-professional who have little to do with finance. E-mails with responses arrive quite quickly, too. Customers are also informed about the changes in legislation. Retirement planning software by Torrid Techniques requires yearly subscription of about $150.

2) Financial founded by Bill Sharpe, a Nobel Prize winner in Economic Sciences. It is free for those who have invested at least $50,000 in Vanguard Financial Services. This software makes no final assumptions about inflation, interest rates, or other factors, but draws a probability curve, so that you can see the full range of possibilities and the chances you have to achieve your retirement goals. This software is also suitable for playing the "what if" game by changing some data you have entered and see, how it affects your situation. It often offers investment and other advice you might need to plan for retirement efficiently.

3) FinancialMentor's Ultimate Retirement Calculator is a calculator that gives users a lot of information on a one-page form. It does not deal with possibilities, but shows you your financial situation on the base of calculations. It requires a lot of data from you for accurate calculations, and is highly customizable. You can add three incomes of different duration and four one-time-only benefits. Results are given in step-by-step reports. You can also get instructions and have your questions answered if you have any.

4) Vanguard Retirement Nest Egg Calculator is available for free on Vanguard website. Users input data by sliding tool bars, and the results are shown on a graph as a range of probabilities. Vanguard Retirement Nest Egg Calculator allows users to easily adjust their data to see how they could make changes in saving and investing that would positively affect their results. Inflation is taken into account when calculating. The tool has simple, user0friendly interface, and there are user guides available. However, the result may be too optimistic or not very precise for some people, as you can't override the 3% inflation rate the program uses for calculations, and tax rates are not taken into account, too, though it is possible to tweak the program to add this feature.

5) J&L Software LLC's Retirement and Financial Planning Software is an integrated retirement and financial planning tool that helps you make a budget and keep track of your expenses while showing you how much to save toward future goals. This information will let you organize your financial life for the present as well as for many years ahead. You can try different scenarios to find out which decisions are best to make, and find solutions to your problems. Perhaps the feature customers appreciate most is the flexibility to decide exactly how much input detail you want to use. You can start out slowly, with a bare outline of your financial situation and retirement goals. As time passes, you can add more details until the software is able to give you an intricately detailed financial report. This retirement planning software can be purchased for $99.

Retirement planning software can deal with probabilities and show you different scenarios of your financial future, but they can't actually predict the future and give you any 100% guarantees.