Personal Capital, a premier digital wealth advisor with the best free financial tools, rolled out some extensive improvements to their already terrific Retirement Planner.
Their goal is to constantly improve the sophistication of their tools to ensure you have the most up-to-date, precise, and holistic view of your financial life.
The new improvements to the Personal Capital retirement planner include:
* You can now view the breakdown and growth of your portfolio by asset location: Taxable, Tax-Deferred, Tax-Free, and Education
* During retirement, your cash flows are now personalized to your specific circumstances based on your tax filing status, state, and annual income events
* Retirement spending assumes a decrease of 1% per year, in line with what we have observed for most retirees
* Adjustment to return assumptions to reflect the impact of current interest rates, investor behavior and transaction costs
* Lower inflation estimates to reflect current market conditions
* Option to enter income events as before or after taxes
* Ability to toggle inflation assumptions for certain income cash flows such as annuities or pensions, which typically do not come with a cost of living adjustment
* A new Recession Simulator that launched in June 2020 given all that’s going on with COVID-19.
When spouses retire in different years, we will consider full retirement to be the year when both spouses are retired. During the period when only one spouse is retired, savings will be adjusted downward by the retired spouse’s salary.
Here’s a brief video recap of the latest updates:
What do the changes mean for you?
The new Retirement Planner’s goal is to give you clarity and confidence into your financial life. These updates to the Retirement Planner should provide more of both.
Simply sign up for Personal Capital, link all your accounts so their Retirement Planner can use real inputs to compute real outputs for your future.
You can read my comprehensive Personal Capital review post here.
About the Author: Sam began investing his own money ever since he opened an online brokerage account in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at two of the leading financial service firms in the world. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate. He also became Series 7 and Series 63 registered. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $200,000 a year in passive income. He spends time playing tennis, hanging out with family, consulting for leading fintech companies and writing online to help others achieve financial freedom.
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