Consumers and financial advisors are encouraged to view retirement planning calculators and software as useful but limited tools. Consider, for example:
- All models are based on assumptions, so poor assumptions can lead to faulty results and decisions.
- Any model result is probabilistic. In other words, there is no certainty with the output. Be conservative when assessing the validity and likelihood of results.
- Hire a fiduciary as your "pilot." The person driving the model results should have your best interests squarely in mind.
- Have contingency plans in place and prepare to use annuities and insurance as backstops.
Applications with some of the strongest reviews include:
- NaviPlan
- MoneyGuide Pro
- Money Tree
Be sure to ask your financial advisor what financial models are driving their presentations and recommendations.
Source: Chicago Tribune
Key Phrases:
- Log in to post comments
Key Phrases:
Key Phrases:
