The Efficacy of Publicly-Available Retirement Planning Tools

33 Pages Posted: 18 Feb 2016 Last revised: 26 Feb 2016

Taft Dorman

Texas Tech University

Barry S. Mulholland

Texas Tech University

Qianwen Bi

Utah Valley University

Harold Evensky

Texas Tech University; Evensky & Katz Wealth Management

Date Written: February 18, 2016

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 professional advisor opinion and theory, critical input variables are identified and recommended. A case scenario is developed incorporating these critical variables and used to test the efficacy of 36 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 (February 18, 2016). 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

Texas Tech University ( email )

1301 Akron Ave, HS-260
Box 41210
Lubbock, TX 79409-1210
United States
806-834-6373 (Phone)
806-742-5033 (Fax)

HOME PAGE: http://www.depts.ttu.edu/pfp/

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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