Retirement Planning Tools
There are many retirement planning tools available to help you plan for retirement, but which ones are best for you?
There are some simple tools and some complex tools. If you are into detailed financial scenarios, some of the complex tools enable you to consider almost all possible life events that could impact your plan.
If you are just looking for some quick estimates of your retirement plan, some of the simple tools could be adequate. A lot of these are also free.
AARP has a
that will evaluate if your vision of retirement is a modest lifestyle, a standard lifestyle with some costly elements, or a quite expensive lifestyle.
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It will ask you 12 multiple choice questions, ranging from how you plan to spend your time to how health conscious you are to your opinion on your financial situation in retirement.
Using a retirement planning tool forces you to accumulate all your information and consolidate it into one place for objective evaluation.
It is a good first step evaluation to see if you need to make some trade-offs in your retirement lifestyle planning or supplement your
There are basically four types of planning tools that are available to you. Many are free and some you'll need to pay for. They are:
- Professional Financial Advisors
You choose what works best for you. You may choose to do some of the planning on your own using any or all of the first three tools and then sit down with a professional Financial Advisor.
Retirement Planning Calculators
As a retirement planning tool, calculators are used to help you quickly "crunch the numbers". They mathematically determine your retirement income based on certain assumptions, such as, investment rate of return and inflation rates. Some are available online for free.
You generally need to enter certain assumptions and financial information. The calculators usually then provide a report that compares your expected financial needs to your expected financial resources.
Retirement Planning Calculator - A
retirement planning calculator.
helps you understand how long your retirement income streams and assets will last.
Retirement Income Calculator - Another retirement planning tool is the
retirement income calculator.
With this tool you make assumptions on if you want to preserve your retirement funds, spend your retirement funds or grow them.
This tool gives you another perspective to consider in doing your planning for retirement.
Retirement Planning Worksheet
retirement planning worksheet
is one of the detailed complex tools, but gives you a very clear picture of what you have and what you need in order to accomplish the lifestyle you are dreaming to have in your retirement. Worksheets provide a way to help organize the information for clear understanding. They provide a quick way to adjust your plan easily.
Retirement Planning Software
Retirement planning software
is another retirement planning tool. Software is more complex in its underlying structure, but usually it is easy for the average person to use. Generally, software is not available for free. However, some companies will give you a restricted version for a free trial to use before you buy it.
Planning tools for retirement are available on the web for you to use. Try them and see which ones work the best for you.
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