August 2, 2011

Online Calculator Takes On Annuities

Not all financial calculators are created equal.

That’s what Fidelity Investments hopes baby boomers will conclude about its “Income Strategy Evaluator,” which may be the first online calculator that proposes how individuals should invest their nest egg to ensure it will last through retirement.

There are numerous calculators online to help working individuals tally how much money they will need to accumulate for their retirement, including “Target Your Retirement,” which was created by Boston College’s Financial Security Project, this blog’s host.

But the strategy for withdrawing from that nest egg during retirement “is very different than the accumulation discussion,” said Chris McDermott, Fidelity’s senior vice president of financial planning. That discussion requires individuals to answer the questions, “What do you want and how much can you get out of your assets?” …Learn More