Retirement tools help get the job done | ABC
Retirement planning can be
overwhelming at times. That’s why it can be helpful to take advantage of the many retirement
tools that are available. Katie Ross, education and development manager for financial education nonprofit
American Consumer Credit Counseling,
said retirement tools can take some of the pain out of planning. “The
readily available tools make it easier to complete many of the most
basic and important tasks and can include things such as budgeting,
creating legal documents, and more,” Ross said. “You can find tools for
people nearing retirement or for ones just beginning to think about the
whole process. Depending on the stage you are in you’re able to make
more
educated decisions about your retirement.”
Be aware that it’s not a great idea to be overly dependent on these tools. Lingke Wang, co-founder of life insurance
startups Ovid and
Ethos,
said retirement planning tools should only be seen as a complement to
retirement planning. You’ll ultimately need to speak with a
professional. “I generally see retirement planning tools as a ‘gateway’
into thinking about retirement. However, engaging with a trained
retirement planner should be the next step. The professional can help assess all facets of one’s situation,” said Wang.
Here are six retirement tools the experts suggest every retirement investor should know about.
1. AARP.org
AARP.org offers several retirement tools such as articles,
retirement calculators, and social security calculators. Even though
retirement tools are helpful, Levar Haffoney, wealth manager at
Fayohne Advisors LLC,
reminds savers that retirement planning tools only offer hypothetical
scenarios. “They cannot provide accurate depictions of your retirement
situation because your lifestyle needs and financial status may change,”
Haffoney said.
2. Life Insurance Calculator by Life Happens
Piggy bank with umbrella concept | iStock.com/BrianAJackson
While you’re planning your retirement, also make sure to
check and see that you have enough life insurance so your loved ones
will be taken care of. Wang said savers should consider the
life insurance calculator developed by Life Happens to help calculate your needs.
3. My Social Security Account
Social security card | iStock.com
Don’t forget about the Social Security website when it comes
to planning for retirement. Emily Brandon, senior editor at U.S. News
& World Report and author of
Pensionless: The 10-Step Solution for a Stress-Free Retirement, said the
my Social Security Account
tool lists earnings history, taxes paid, and a personalized estimate of
your future Social Security benefit. “You can find out how much you
will be eligible to receive from Social Security in retirement if you
sign up at various ages,” Brandon said. “The document will also list the
amount you will qualify for if you become disabled and how much your
family members might receive if you pass away.”
4. Advisor connect
Just how much of your budget will go toward housing costs? | iStock.com
Advisor Connect provides phone-based investing advice to
customers in all 50 states. Financial advisors are not compensated based
on the products they sell, and they don’t sell proprietary funds.
Yvette Butler, president of
Capital One Investing,
said clients have access to Capital One Advisors Managed Portfolios and
that each portfolio is comprised of low-cost, third-party ETFs (not
proprietary funds).
5. American Consumer Credit Counseling financial calculator
Calculating income | iStock.com
American Consumer Credit Counseling, which provides
information and assistance on issues such as identity theft, credit,
debt, and budgeting has a helpful
financial calculator. This tool helps retirement savers figure out if their nest egg is large enough to retire comfortably.
6. T. Rowe Price retirement income calculator
Retirement planning | Thinkstock
Art Koff, founder of
Retired Brains,
recommends using the T. Rowe Price retirement income calculator to
assist with calculating future retirement income. “The calculator helps
you determine how much you may have available to spend each month in
retirement and the likelihood your savings will last throughout your
retirement. The calculator will run 1,000 market simulations to evaluate
your chances of success and offer some tips to help improve your
situation,” Koff said.
Culled from Money & Career Cheat Sheet:
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