Financial Calculator Update 12/31/2005
The quarterly update for 12/31/2005 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 recently 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 9/30/2005 update: 9/30/2005 Update. (The 12/31/2005 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. The directory you enter will be created. It will have three subdirectories. It is recommended that you extract the update to a new directory and then move the required files to your production environment.
- 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.
- 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.)
- None
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 to December 2005. 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 2005, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year. During this period, the highest 12-month return was 61%, 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 2005. The CPI for 2005 was reported by the Minneapolis Federal Reserve as 3%. This was not a large enough change from the average to cause a change in the long-term rate of inflation in our definition, however the definition was updated to indicate 2005 data was included. 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 2005.
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
- Fixed Annuity Calculator (FixedAnnuity.html), Variable Annuity Calculator (Annuity.html): The definitions have been revised to comply with NASD Conduct Rule 2210(d)(1)(A) and (B). This includes a complete definition of an annuity, relabeling annuities as insurance products instead of the previous definition that described them as an investment products and the comparisons between annuities and an IRAs has also been removed.
- Interest Only Mortgage (MortgageInterestOnly.html): The definitions and the calculation module have been updated better illustrate the most common interest only mortgages. The previous version of the calculator assumed that you would need to refinance your mortgage at the end of the interest only period. The most common mortgages will not require a refinancing after the interest only period, but instead will become a fully amortizing mortgage for the remaining number of years in the term. This change affects the report, input fields, definitions and the amortization schedule. There are two new entry fields. 1. Term of loan - is the length of the loan including any interest only period and any fully amortizing period. 2. Interest only period - is the number of years that the mortgage requires interest only payments.
- CD Ladder Calculator (CDLadder.html): The title of the graph has been change from:
You will earn $xxx more using CD Laddering.
to
You might earn $xxx more using CD Laddering.
- Cool Million (Millionaire.html): The introductory paragraph has been changed from:
What might it take to save one million dollars? This financial calculator helps you find out. Enter in your current savings plan and view graphically your financial results for each year until you retire! A complete report tells you when you could hit your Cool Million - and what you can do to reach this milestone on target!
to
What might it take to save one million dollars? This financial calculator helps you find out. Enter in your current savings plan and graphically view your financial results for each year until you retire. Press the "View Report" button for a report that helps you see when you might hit your cool million - and what you might be able to do to possibly achieve this goal.
- 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 2005. Minor changes have occurred to the definitions and the calculations. (Note: the 2006 versions of these calculators will be release 3/31/2006). No new input or output fields have been added.
- Estate Tax Planning (EstatePlan.html): This calculator has been updated to the 2006 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 2005 nursing home and home health care costs.
- 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), Retirement Contribution Effects on Your Paycheck (RetirePayrollSavings.html): Each of these calculators has been updated to the new withholding rates as published in IRS Publication 15, Rev Jan. 2006. The associated withholding tables have been updated as well as the calculations. In addition, the definitions have been updated to reflect 2006 changes for the following: 401(k)/403(b) limits, FICA OASDI, $3,300 allowance increased from $3,200.
- 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 2005-06 school year. The defaults have also been changed to reflect the new average cost for the 2005-06 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 2006 maximum contribution limits of $15,000 annually for those under 50 and $20,000 annually for those 50 and older.
- 457 Calculator (Retire457.html): The definitions and the calculation module have been updated to reflect the new 2006 maximum contribution limits of $15,000 annually for those under 50 and $20000 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 2006 rates.
- 403b Calculator (Retire403b.html): The definitions and the calculation module have been updated to reflect the new 2006 maximum contribution limits of $15,000 annually for those under 50 and $20,000 annually for those 50 and older.
- 72(t) Calculator: Early withdrawals from retirement accounts (Retire72T.html, Retire72T2.html), 72(t) Distributions: Impact on retirement fund balances (Retire72TAlt.html): The Federal Mid-Term rate has been updated for January 2006. This change affects the calculators default values and the definition of Reasonable Interest Rate For January 2006, 120% of the Federal Mid-Term rate was 5.39%.
- Roth IRA (RothIRA.html), Traditional IRA (RegularIRA.html), Roth vs. Traditional IRA (RothvsRegular.html): These calculators have been updated to 2006 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 CPP and OAS defaults have been updated to $844 and $484 respectively, to reflect the January 2006 maximum OAS and CPP amounts. In addition, CPP, OAS and QPP no longer are required to start at age 65. The new version of the calculator will start your benefits in the year you retire. If you retire before age 60, the benefit will start at age 60. Every year before you turn 65 you lose 6% of your CPP, OAS or QPP benefits. Starting at age 60, for example, will reduce your benefit by 30%.
- Education Savings Plan Canada – (CACollegeSavings.html, FRCollegeSavings.html) Has been updated to reflect the latest rules for the RESP plans and their matching grants. The calculator and definitions reflect the current plan as described at http://www.sdc.gc.ca/en/hip/lld/cesg/publicsection/faqs_resp.shtml
- 2006 Federal Tax Rate table has been added to the following calculators (replacing the 2005 Federal Tax Table)
| Calculator Name | HTML File Changed |
|---|
| 401(k) Net Unrealized Appreciation vs. Rollover | StockRollover401k.html |
| Municipal Bond Tax Equivalent Yield | TaxEquivYeild.html |
| Mortgage Debt Consolidation | MortgageConsolidate.html |
| Roth 401(k) or Traditional 401(k)? | RothvsTraditional401k.html |
Updates that do not require modifications to HTML documents
- Mortgage calculators now allow for 40 year term
All mortgage calculators have been updated to allow terms of up to 40 years. The following calculators have been affected by this change:
| Bi-weekly Payment Calculator | Biweekly.html |
| Bi-weekly Payments for an Existing Mortgage | ExistingBiweekly.html |
| Adjustable Rate Mortgage Calculator | MortgageAdjustable.html |
| Mortgage APR Calculator | MortgageApr.html |
| APR Calculator for Adjustable Rate Mortgages | MortgageAprAdjustable.html |
| ARM vs. Fixed Rate Mortgage | MortgageArmvsFixed.html |
| Balloon Mortgages | MortgageBalloon.html |
| Blended Rate Mortgage Calculator | MortgageBlend.html |
| Mortgage Loan Calculator | MortgageLoan.html |
| Fixed Rate Mortgage vs. Interest Only Mortgage | MortgageFixedvsIO.html |
| Fixed Rate Mortgage vs. LIBOR ARM | MortgageFixedvsLibor.html |
| Option ARM vs. Fixed Rate Mortgage | MortgageFixedvsNegAm.html |
| Mortgage Required Income | MortgageIncome.html |
| Interest Only Mortgage Calculator | MortgageInterestOnly.html |
| Mortgage Loan Calculator (PITI) | MortgageLoan2.html |
| Maximum Mortgage | MortgageMax.html |
| Mortgage Payoff | MortgagePayoff.html |
| Mortgage Points Calculator | MortgagePoints.html |
| Mortgage Qualifier | MortgageQualifier.html |
| Refinance Breakeven | MortgageRefinance.html |
| Rent vs. Buy | MortgageRentvsBuy.html |
| Mortgage Tax Savings Calculator | MortgageTaxes.html |
| Refinance Interest Savings | ShouldIRefi.html |
| Interest Only ARM Calculator | MortgageIOAdjustable.html |
- Social Security Calculator (SocialSecurity.html): Calculations updated for 2006 income limit of $94,200 for FICA.
- How important is Social Security? (NoSocial.html): Calculations updated for 2006 income limit of $94,200 for FICA.
- Retirement Pension Planner (RetirementPlan3.html), Retirement Planner (RetirementPlan.html): Calculations updated for 2006 income limit of $94,200 for FICA.
