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COPYRIGHT 2005 The Dallas Morning News
Byline: Pamela Yip
Feb. 28--They're all over the Web -- financial calculators that help figure how much you need to save for retirement.
But do they provide good advice?
Experts say that while they generally are helpful, online retirement calculators can trip up consumers.
A retirement calculator that asks how old you are and estimates how much you have to save isn't very helpful, says Conrad Ciccotello, director of personal financial planning programs at Georgia State University in Atlanta.
At the other extreme are exasperating calculators that ask endless questions.
Most people are looking for basic guidance, says Rob Nestor, a principal in the Retiree Services Group at the Vanguard Group.
"They just want a ballpark, simple, easy-to-get-to answer. Am I basically on track?"
There are two key caveats with online calculators:
--One, it's garbage in, garbage out.
"There are too many variables and data inputs," says Bryan Clintsman of Clintsman Financial Planning in Southlake. "The user of an online retirement calculator has to know not only the answers but also the right questions to ask."
--Two, they can help consumers with a typical retirement situation, but they miss the mark for those with more specialized needs, such as the self-employed....
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