Financial Calculator Update 12/31/2004
The quarterly update for 12/31/2004 is a large update, affecting almost all calculators. Many of the changes affect the functionality of the calculations, updating them to 2005 rules and regulations. The most significant changes in this update were to the retirement, savings, and tax calculators.
If you have not updated your calculators in a while you should definitely refresh your existing HTML calculator pages. All updates are cumulative, so if you start fresh with this update you will have all previous calculator updates as well. If you would like, you can review our 9/30/2004 update: 9/30/2004 Update. (The 12/31/2004 update includes all changes included in previous updates, you do not need to download any other updates to have the most current versions of all of the calculator components.)
Update instructions*:
- Download the latest version of your calculators from your download site, found on your update e-mail notice.
- Execute the Calc.exe file from your download. This is a self-extracting zip file. (Or unzip the Calc.zip file if you are using a non-windows platform.)
- When prompted for a directory, you may use the default of "java" or enter your own. It is recommended that you extract the update to a new directory and then move the required files to your production environment. One directory will be created. It will have three subdirectories.
- Replace the contents of your current KJEgui, KJEgraph and KJEcalculation directories with the new version.
- Replace your current dinkytown.jar file with the new version.
- Replace all files with the extension "class" with the new version.
- Make required changes to any HTML documents as described in this document or replace all of your existing HTML documents and re-apply your web-site custom changes.
*Please note, if you have a Servlet or other custom deployment (other than the custom formatted delivery described below), installation instructions for your package will found on your download page.
Update for custom formatted delivery**:
**Custom formatted delivery is a special option that you can add to your maintenance update service. With this option we apply an HTML, JSP, CFM or ASP template to your calculator pages and their reports before the update is sent to you. You will then receive your calculator pages with all of your site formatting in place, without any rework to include changes that have been made to the pages deployed on your server. If you are interested in using custom formatted delivery, please contact us at (612) 331-2291, or for more information.
- Download the latest version of your calculators from your download site, found on your update e-mail notice.
- Execute the Calc.exe file from your download. This is a self-extracting zip file. (Or unzip the Calc.zip file if you are using a non-windows platform.)
- When prompted for a directory, you may use the default of "c:\java" or enter your own. It is recommended that you extract the update to a new directory and then move the required files to your production environment. One directory will be created. It will have three subdirectories.
- Replace the contents of your current "java" directory (including the KJEgui, KJEgraph and KJEcalculation directories) with the new version.
All pages will be custom formatted to your site, no further integration or modification of the calculators is required. Please note, if your custom delivery uses Active Server Pages (ASP), Java™ Server Pages (JSP) or Cold Fusion (CFM) the respective ASP, JSP or CFM pages will be in place of your HTML documents for all calculator main pages. Report templates will remain in HTML documents (these documents are not called by your server, but instead used by the applet in the main calculator page).
To clear your Browser's cache:
When you test the new version of the calculators, make sure that the browser you are using uses the new files instead of any it may have in its cache. You may need to clear the browser's cache manually to ensure the new versions are loaded.
Internet Explorer:
Choose "Internet Options" under the "Tools" menu and on the "General" tab click on the "Delete Files…" button. Click "Ok" when prompted if you wish to delete all temporary files. Close this dialog box, and all open Internet Explorer windows. Your Cache should then be cleared.
Netscape:
Choose "Preferences" under the "Edit" menu. Click on the "Advanced" category and then "Cache" option which appears under it. Click the "Clear Memory Cache" button, then click the "Clear Disk Cache" button.)
Master Changes (no HTML changes required affects all calculators but is limited to java class files.)
- Updated dinkytown.jar and class files: All "class" files and the java archive "dinkytown.jar" have had minor internal changes. For this release, you must update all "class" files and the java archive "dinkytown.jar" when you deploy. This is the normal procedure for any update, however, it is particularly important that you do not mix old and new versions of the financial calculators. Prior versions of the calculators will not operate with the newest release. This only affects the "class" files and the "dinkytown.jar" file.
- When using the SUN Plug-in version 1.4: Popup windows would not always appear correctly if the button that brings up the windows is pressed twice without first closing the popup. This has been corrected, the popup now will always appear on top. This change requires the java archive "dinkytown.jar" to be replaced with the newest version included in this update.
Master Changes (HTML Modification required, affects all or most calculators.)
- The definition for Rate of Return has been updated to include the S&P 500 average through 2004. The new definition now reads:
The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2004, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.5% per year. During this period, the highest 12-month return was 64%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
This affects the following 47 calculators:
| Calculator Name | HTML File Changed |
|---|
| 401(k) Savings Calculator | Retire401k.html |
| 401(k) Spend It or Save It Calculator | Rollover401k.html |
| 403(b) Savings Calculator | Retire403b.html |
| 457 Savings Calculator | Retire457.html |
| 72(t) Distribution Impact | Retire72Alt.html |
| Annual Stock Option Grants | StockGrants.html |
| Beneficiary Required Minimum Distributions | RetireBeneficiary.html |
| Benefit of Spending Less | SpendLess.html |
| College Savings | CollegeSavings.html |
| Company Stock Distribution Analysis | StockRollover401k.html |
| Compound Interest and Your Return | CompoundInterest.html |
| Consolidation Loan Investment Calculator | InvestmentDebt.html |
| Cool Million | Millionaire.html |
| Debt Consolidation Calculator | BizConsolidate.html |
| Don't delay your savings! | WaitCost.html |
| Emergency Savings Calculator | Emergency.html |
| Equipment Buy vs. Lease | BizBuyvsLease.html |
| How important is Social Security? | NoSocial.html |
| Human Life Value | HumanLifeValue.html |
| Investment Loan | InvestmentLoan.html |
| Investment Returns | InvestmentReturn.html |
| Lease vs. Buy | BuyvsLease.html |
| Life Insurance Calculator | SPLifeInsurance.html |
| Life Insurance Calculator | LifeInsurance.html |
| Lunch Savings | LunchSaver.html |
| Minimum Required Distributions | RetireDistrib2.html |
| Mutual Fund Expense Calculator | FundExpense.html |
| Pension Plan Retirement Options | PensionOptions.html |
| Rent vs. Buy | MortgageRentvsBuy.html |
| Required Minimum Distributions | RetireDistrib.html |
| Required Minimum Distributions | RetireDistrib.html |
| Required Minimum Distributions (Spanish) | SPRetireDistrib.html |
| Retirement Income | RetirementIncome.html |
| Retirement Pension Planner | RetirementPlan3.html |
| Retirement Planner | RetirementPlan.html |
| Retirement Shortfall | RetireShort.html |
| Roth IRA Calculator | RothIRA.html |
| Roth IRA Conversion | RothTransfer.html |
| Roth vs. Traditional IRA | RothvsRegular.html |
| Savings Calculator | CompoundSavings2.html |
| Savings Calculator | CompoundSavings.html |
| Savings Distribution Calculator | DistribSavings.html |
| Savings Goals | Savings.html |
| Savings, Taxes and Inflation | SavingsVariables.html |
| Stock Option Calculator | StockOptions.html |
| Traditional IRA Calculator | RegularIRA.html |
| Variable Annuity Calculator | Annuity.html |
- The definition for Inflation and Expected Inflation Rate has been updated to include CPI data from 2004. The new definition now reads:
What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2004.
This affects the following 13 calculators:
| Calculator Name | HTML File Changed |
|---|
| Disability Insurance Needs | Disability.html |
| Investment Returns | InvestmentReturn.html |
| Life Insurance | LifeInsurance.html |
| Long Term Care | LongtermCare.html |
| Cool Million | Millionaire.html |
| Mortgage Rent vs. Buy | MortgageRentvsBuy.html |
| Social Security | SocialSecurity.html |
| How important is Social Security? | NoSocial.html |
| Retirement Planner! | RetirementPlan.html |
| Retirement Pension Planner | RetirementPlan3.html |
| Retirement Shortfall Calculator | RetireShort.html |
| Savings Goal | Savings.html |
| Savings, Taxes and Inflation | SavingsVariables.html |
Updates that require modifications to HTML documents
- 1040 Tax Estimator (Tax1040.html), 1040EZ Tax Form (TaxEZ1040.html), Self Employment Tax Calculator (TaxSelfEmployment.html), Marginal and Effective Tax Rates (TaxMargin.html): Have been finalized for the 2004. Minor changes have occurred to the definitions and the calculations. (Note: the 2005 versions of these calculators will be release 3/31/2004). No new input or output fields have been added.
- Estate Tax Planning (EstateTax.html): This calculator has been updated to the 2005 rates and rules. This has affected the definitions and the calculations. No new input or output fields have been added.
- Long Term Care (LongTermCare.html): The estimated costs have been updated to reflect the cost of 2004 nursing home and home health care costs.
- Student Budget Calculator (StudentBudget.html): RESP's have been renamed Educational Savings Plans: The following parameter has been added to make this change:
<PARAM name="MSG_INPUT_ITEM70" value="Educational savings plans">
- Payroll (Payroll.html), Hourly Paycheck Calculator (PayrollHourly.html), Section 125 Cafeteria Plan (Payroll125.html), Net to Gross Paycheck Calculator (PayrollGross.html), 457 Payroll Calculator (457Payroll.html), Should my spouse work? (IncomeOneorTwo.html): Each of these calculators has been updated to the new withholding rates as published in IRS Publication 15, Rev Jan. 2005. The associated withholding tables have been updated as well as the calculations. In addition, the definitions have been updated to reflect 2005 changes for the following: 401(k)/403(b) limits, FICA OASDI, $3,200 allowance increased from $3,100.
- College Savings (CollegeSavings.html): The definition for tuition, room and board, and education cost inflation have been updated to include the average costs for the 2004-05 school year. The defaults have also been changed to reflect the new average cost for the 2004-05 school year and the average cost increases for tuition and room and board.
- 401(k) Calculator (Retire401k.html): The definitions and the calculation module have been updated to reflect the new 2005 maximum contribution limits of $14,000 annually for those under 50 and $18,000 annually for those 50 and older.
- 457 Calculator (Retire457.html): The definitions and the calculation module have been updated to reflect the new 2005 maximum contribution limits of $14,000 annually for those under 50 and $18,000 annually for those 50 and older.
- 401(k) Spend It or Save It Calculator (Rollover401k.html): Income tax brackets in definitions have been updated to the 2005 rates, Source: Revenue Procedure 2004-71 (http://www.irs.gov/pub/irs-drop/rp-04-71.pdf).
- 72(t) Calculator: Early withdrawals from retirement accounts (Retire72T.html), 72(t) Distributions: Impact on retirement fund balances (Retire72TAlt.html): The Federal Mid-Term rate has been updated for January 2005. This change affects the calculators default values and the definition of “Reasonable Interest Rate” For January 2005, 120% of the Federal Mid-Term rate was 4.53%.
- Roth IRA (RothIRA.html), Traditional IRA (RegularIRA.html), Roth vs. Traditional IRA (RothvsRegular.html): These calculators have been updated to 2005 phase out ranges and the maximum annual contribution of $4,000 per individual under 50 and $4,500 per individual over 50. These changes include updates to the calculation module as well as the definitions and the report.
- Canadian Retirement Planner (CARetirementPlan.html): The OAS and CPP defaults have been updated to $828 and $471 respectively, to reflect the January 2005 maximum OAD and CPP amounts.
- Canadian Mortgage Rent vs. Buy (CAMortgageRentvsBuy.html): A new input field for “Maintenance/Condo Fees” has been added to the calculator. Entering an amount here will add these fees/costs to the total monthly payment for owning a home. Having this field on your calculator is optional, and by default this new field will not appear. To turn this feature on, add the following parameters to the CAMortgageRentvsBuy.html document:
<PARAM name="SHOW_MAINTENANCE" value="true">
<PARAM name="MAINTENANCE" value="0">
<PARAM name="MSG_MAINTENANCE" value=" Maintenance/Condo Fees ">
<PARAM name="MSG_MONTH" value="per month">
You will also need to add the following to the report:
<TR><TD width=50%><b> Maintenance/Condo Fees </b></TD><TD width=50%>MAINTENANCE</TD></TR>
- Mortgage Rent vs. Buy (MortgageRentvsBuy.html): A new input field for "Assoc. dues & maintenance" has been added to the calculator. Entering an amount here will add these fees/costs to the total monthly payment for owning a home.
Having this field on your calculator is optional, and by default this new field will not appear in previous versions of the calculator. You can use the new version of the MortgageRentvsBuy.html document, which has this feature already activated. To turn this feature on in an existing calculator html page add the following parameters to the MortgageRentvsBuy.html document:
<PARAM name="SHOW_MAINTENANCE" value="true">
<PARAM name="MAINTENANCE" value="0">
<PARAM name="MSG_MAINTENANCE" value="Assoc. dues & maintenance">
<PARAM name="MSG_MONTH" value="per month">
You will also need to add the following to the report:
<TR><TD width=50%><b>Association dues & maintenance</b></TD><TD width=50%>MAINTENANCE</TD></TR>
- Canadian Mortgage Qualifier (CAMortgageQualifier.html): We have added a new field “Condo fees” to allow the entry of condo fee or strata fees. 50% of the value entered into this field is included in the monthly payment used to calculate your qualifying amount. The report document was modified to display the entry field for this item.
- 403b Calculator (Retire403b.html): The definitions and the calculation module have been updated to reflect the new 2005 maximum contribution limits of $14,000 annually for those under 50 and $18,000 annually for those 50 and older.
OPTIONAL CHANGES (Applet version only)
A new input field for “Annual salary increase” has been added to the calculator. Entering an amount here will add increase your salary each by the percent entered. As your salary increases, the same percentage of it will be directed to the 403b plan, the total dollar amount will be increased. Having this field on your calculator is optional, and by default this new field will not appear unless you update your HTML documents. You can also manually turn this feature on, by adding the following parameters to the Retire403b.html document:
<PARAM name="SHOW_SALARY_INCREASE" value="true">
<PARAM name="SALARY_INCREASE" value="0.0">
<PARAM name="MSG_SALARY_INCREASE" value="Annual salary increase">
You will also need to add the following to the report:
<TR><TD><b>Annual salary increase</b> </TD><TD> SALARY_INCREASE</TD></TR>
- Canadian Home Budget (CAHomeBudget.html) OPTIONAL NEW FUNCTIONALITY: “Provincial tax” added to the paycheck calculator for both French and English. To have this new value appear modify the following parameter (or use the update HTML document):
Change:
<PARAM name="MSG_FICA" value=" ">
To:
<PARAM name="MSG_FICA" value="Provincial tax">
or for French:
<PARAM name="MSG_FICA" value="Impôt provincial">
You will also need to add this item to the report. Add the line:
<TR><TD><b> Provincial tax </b></TD><TD>FICA</TD><TD>SPOUSE_FICA</TD></TR>
Or for French:
<TR><TD><b>Impôt provincial</b></TD><TD>FICA</TD><TD>SPOUSE_FICA</TD></TR>
- LifeTime.html: Removed the word calculator from the page title in the masthead
- LongtermCare.html: Removed the word calculator from the page title in the masthead
- SocialSecurity.html: Changed opening statement to read: "Do you wonder how much…"
- RetirementIncome.html: Removed the word calculator from the page title in the masthead In the opening paragraph, "year-by-year" is now double hyphenated
- Retire72T.html: Make sure the masthead page title has a lowercase t in 72t In the SEPP definition, 3rd bulleted item, add a comma here: "Annuity 2003 Mortality Table, which" In the Reasonable interest rate definition, first sentence of second paragraph, removed the commas after January and 2003, so the sentence reads: "72(t) withdrawals setup prior to January 2003 had some…"
- Retire72Alt.html: Make sure the masthead page title has a lowercase t in 72t In the SEPP definition, 3rd bulleted item, add a comma here: "Annuity 2003 Mortality Table, which" In the Distribution interest rate definition, first sentence of second paragraph, removed the commas after January and 2003, so the sentence reads: "72(t) withdrawals setup prior to January 2003 had some…"
- RetireDistrib.html: In the opening sentence, replaced the comma after "annually" with a semicolon In the first sentence of the Calculation rates definition, add a comma between 'tables' and 'which' In the third sentence of the Calculation rates definition, removed comma between 'January' and '2004'
- RetireShort.html: Removed the word calculator from the page title in the masthead
- SpendLess.html: In the Total savings after taxes definition, "tax-free" is now hyphenated.
- LunchSaver.html: Removed the word calculator from the page title in the masthead.
- NetWorth.html: Removed the word calculator from the page title in the masthead. In the definitions, changed three instances of "real-estate" to "real estate" (non-hyphenated, two words).
- HomeBudget.html: In the definitions, changed five instances of "paystub" to "pay stub" (two words).
- StudentBudget.html: Removed the word calculator from the page title in the masthead. In the opening paragraph, "eight-month" is now hyphenated. In the Living expenses definition, "childcare" is now one word. In the Entertainment and travel definition, extra space after "movies" and the comma has been removed. In the Savings and investments definition, both "short-term" and "long-term" is now hyphenated.
- Tax1040.html: Starting the second sentence of the Alternative minimum tax definition, "It" is now capitalized. In the 4th bullet under the Capital gain or loss definition, "un-recaptured" is now hyphenated.
- EstatePlan.html: In the second to last sentence of the Exemptions and maximum tax rates definition, there is now a comma between "45%" and "which". In the definitions, changed four instances of "real-estate" to "real estate" (non-hyphenated, two words).
- TaxSelfEmployment.html: In the opening paragraph, three instances of "self-employment" (or some variation) is now hyphenated. In the definitions, thirteen instances of "self-employment" (or some variation) is now hyphenated. In the third sentence of the Net business income or loss definition, replaced the comma after "partnerships" with a semicolon. In the fourth sentence of the Net business income or loss definition, "Self Employment" is no longer capitalized.
- DebtAccel.html: In the fourth sentence of the opening paragraph, replaced the comma after "simple" with a semicolon.
Updates that do not require modifications to HTML documents
- Social Security Calculator (SocialSecurity.html): Calculations updated for 2005 income limit of $90,000 for FICA.
- How important is Social Security? (NoSocial.html): Calculations updated for 2005 income limit of $90,000 for FICA.
- Retirement Pension Planner (RetirementPlan3.html), Retirement Planner (RetirementPlan.html): Calculations updated for 2005 income limit of $90,000 for FICA.
- 15 vs. 30 year Mortgage (MortgageCompare.html): Now allows for three decimal places on the interest rate instead of 2.
- Adjustable Rate Mortgage Calculator (MortgageAdjustable.html): This calculator has been enhanced to allow up to 36 months between adjustments. The previous version allowed you to enter the number of months, up to 120, before the rate would adjust and the number of months between adjustments after that period of time. The number of months between adjustments was limited to 1 through 12.
- Canadian Mortgage Rent vs. Buy, Canadian Mortgage Qualifier (CAMortgageRentvsBuy.html, CAMortgageQualifier.html): Previously the full amount (7%) of GST is included when the new home purchase box is selected. However, buyers who occupy a home as a residence (an underlying assumption of the Rent vs. Buy calculator) are liable only for "Net GST", which is determined by the purchase price. Please be aware that current calculator significantly overstates GST for purchase prices of less than $450,000.
We now include the formulas for the correct calculation of net GST in the calculator. Specifically:
For homes costing $350,000 or less, a rebate of 36% of the GST paid is received, to a maximum of $8,750. That means paying approximately 4.5% GST (not 7%) on the purchase price. For example, purchase price is $150,000: GST is $150,000 x 7% = $10,500; rebate is $10,500 x 36% = $3,780; Actual GST paid on the home = $10,500 - $3,780 = $6,720.
For homes selling for between $350,000 - $450,000, the maximum rebate of $8,750 declines to zero on a proportional basis: Rebate = $8,750 x ($450,000 - Home Price) / $100,000. For example, purchase price is $400,000: GST is $400,000 x 7% = $28,000; GST rebate is $8,750 x ($450,000 - $400,000) / $100,000 = $4,375 GST rebate; Actual GST paid = $28,000 - $4,375 = $23,625.
For homes selling for $450,000 or more, no rebate applies, GST = 7%.
