Useful Web sites for the practicing CPA

Online Retirement Calculators

Do you know where your clients are going for retirement and investment information? It's likely they are tapping into the Internet to answer their questions.

www.fplanauditors.com

This site is designed for financial advisers. Calculators in the site use a historical analysis method that predicts the likely outcome of a financial plan based on its implementation in different historical market periods. The best part about the calculations are their detail--you will know all of the "assumptions" that are used to determine the retirement projections. Accounts on the site are free, and information can be saved.

www.vanguard.com/?retiring

Vanguard's online retirement planner allows the user to adjust variables and run numerous "what if" scenarios. But, it suggests asset allocations using only Vanguard funds. This is an excellent site to help educate your client on retirement planning. If you're not a Vanguard customer, however, you can't save your information.

www.financialengines.com

Founded by Nobel Prize-winning economist William Sharpe, this site is primarily designed for 401(k) programs. Calculations are based on Monte Carlo simulation (MCS), a statistical generation of random possible returns for any given time period based on a statistically assumed distribution of returns. What makes financial advisers nervous is that you can't see all the assumptions and calculations--it's a veritable "black box."

www.fool.com

Unfortunately, some of your clients may be planning their future based on the retirement planning calculator on this site. They'll have to consult a sage as well because the site asks users to guess how long they will live and what their investment returns will be. The site does offer some useful information, but there is no compelling reason for a CPA to visit it for retirement advice.

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