Retirement Savings Planner 2006   - User Guide and FAQ

Frequently Asked Questions - Retirement Savings Planner 2006

1. What does "Personal Edition" mean?
   Personal Edition is for use by individuals for their own planning. Personal Edition cannot be used for any Commercial Use.
   
   
2. What does "Couples Edition" mean?
   Couples Edition is for use by a couple for their own planning. I.e. a Husband and Wife who both work can do a combined analysis of their retirement goals, but track savings and contributions, social security, pensions, etc. as separate entries. This Edition cannot be used for any Commercial Use.
   
   
3. What does "Professional Edition" mean?
   Professional Edition means that you can use our software in a Commercial context. If you use the software to create plans for someone else you must purchase the Professional Edition. This includes but is not limited to financial advisors, planners, insurance agents, CPAs, lawyers, trust departments, pension administrators, HR/Personnel, etc. using the software in a business context.
   
   
4. My family is long-lived. Why can't I calculate to age 125?
   First, an initial program assumption was made to prevent the graphs from going ballistic due to extremely high numbers. That assumption capped the highest age at 90. This assumption has now been increased to 100 in the SpreadSheet. An even higher age may be configured in a later revision of the software.
   Second, this program is just a rough estimate. Assuming investment returns as fixed over long periods of time is a gross estimate at best. It's not completely realistic since returns fluctuate over time through bull and bear markets. Allowing estimates up to very high ages like 110 makes the program estimate even more unrealistic due to the extremely long time horizon. We don't want to encourage such gross estimates since it is extremely misleading.
   Third, if you are going to live a long time you should make plans to live off your interest and investment earnings only. Once you dip into your principal, you may outlive your savings. The program can help you estimate what savings you will need in order to accomplish this amazing goal, regardless of how long you live (i.e. if you are living off interest at age 90 you hopefully will continue that practice even if you live to age 110.) If your retirement income needs are less than the investment earnings on your savings, then presumably you will not run out of savings.