Are Retirement Planning Tools Really Helping You?David Macino
If you are looking for advice or tools to help with retirement planning, the internet provides you with calculators, savings planners, and web retirement skills. Online tools can be extremely beneficial for your retirement planning, but you should use them with caution. Some will offer assistance and guidance through the process, while others may end up being a scam. It is important to conduct a detailed search in order to find the best retirement planning tools for your situation.
Pros and Cons of Using Retirement Planning Tools:
No Negative Feedback or Judgments
Trying to plan your retirement with a financial planner can be stressful. It is easy to feel judged or criticized if you have not made the smartest financial decisions in the past. Working with an online calculator is a great starting off point to determine where you are at financially and how to get the process of retirement planning started.
Calculators Consider More than Investments
Financial planning is tricky. People often think their retirement plan is all about savings and investments. Planning calculators consider many more factors to help determine the best course of action. Some considerations include how long you may live, how much you need to live comfortably, cost of living, and how other factors like family or travel can impact your budget.
Calculators Don’t Factor for Early Retirement
A downfall of most online calculators is that they don’t factor for early retirement. Most only allow you to plan for a retirement at or around the same age you would begin collecting Social Security. Some people may be in a financial situation where they can retire early, and a calculator may not be able to help them.
Calculators Don’t Have Accurate Life Expectancy Features
It is impossible for you, a financial planner, or a retirement calculator to know how long you will live. Calculators are the least reliable because they make an assumption about your life expectancy considering your age and health. They don’t include other important factors like race, income, or gender.
Usually Only Made for Single Filers
Online retirement calculators help to forecast retirement planning for single parties. Very few have options to plan as a married couple. This leaves out important factors that could contribute towards your retirement plan like spousal benefits and your expectancy scenarios.
How to Choose the Right Calculator
If you decide to take a stab at an online calculator as a starting off point, it is important to find the best one for your needs. You want to pay attention to how many questions the calculator is asking. The more complex the questions are, the more likely you will get a response that is accurate.
Contact a Retirement Advisor
While online retirement planning tools are a great starting point and can point you in the right direction for retirement planning, you should seek the guidance of a retirement advisor. An advisor will be able to evaluate your financial history and help plan for your future. The professionals at Macino Financial specialize in financial planning and are available to answer any questions you have about the process. If you’re not getting the attention and service you deserve, call us at 419.491.0909 to schedule a consultation.
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