The Efficacy of Publicly-Available Retirement Planning Tools

45 Pages Posted: 18 Feb 2016 Last revised: 14 Jan 2019

See all articles by Taft Dorman

Taft Dorman

Texas Tech University

Barry S. Mulholland

University of Akron - Department of Finance

Qianwen Bi

Utah Valley University

Harold Evensky

Texas Tech University; Evensky & Katz Wealth Management

Date Written: October 9, 2018

Abstract

Publicly available retirement planning tools are publicized to aid households in their retirement planning efforts, but households are likely overestimating tool effectiveness. The authors conclude that the advice provided from a majority of these tools is extremely misleading to households and propose a more systematic approach to tool development by improved choice of input variables. Analyzing theory and professional advisor opinion, critical input variables are identified and recommended. A case scenario is developed incorporating these critical variables and used to test the efficacy of 41 publicly available retirement planning tools.

Keywords: Retirement planning tools, individual investor, retirement calculators, life-cycle theory

JEL Classification: D14, D12, O21

Suggested Citation

Dorman, Taft and Mulholland, Barry S. and Bi, Qianwen and Evensky, Harold, The Efficacy of Publicly-Available Retirement Planning Tools (October 9, 2018). Available at SSRN: https://ssrn.com/abstract=2732927 or http://dx.doi.org/10.2139/ssrn.2732927

Taft Dorman (Contact Author)

Texas Tech University ( email )

1301 Akron Ave, HS-260
Box 41210
Lubbock, TX 79409-1210
United States

Barry S. Mulholland

University of Akron - Department of Finance ( email )

259 S. Broadway St.
Akron, OH 44325-4803
United States
330-972-4524 (Phone)
330-972-5970 (Fax)

HOME PAGE: http://www.uakron.edu/cba/departments/finance/financial-planning.dot

Qianwen Bi

Utah Valley University ( email )

800 West University Parkway
Orem, UT 84058-5999
United States
8018638761 (Phone)
8018637218 (Fax)

Harold Evensky

Texas Tech University ( email )

1301 Akron Ave, HS-260
Box 41210
Lubbock, TX 79409-1210
United States

Evensky & Katz Wealth Management ( email )

4000 Ponce de Leon Boulevard
Penthouse
Coral Gables, FL 33146
United States

HOME PAGE: http://www.evensky.com

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