Maintenance Update 12 31 2006

Financial Calculator Update 12/31/2006

The quarterly update for 12/31/2006 is a large update, affecting almost all calculators. Many of the changes affect the functionality of the calculations, updating them to 2007 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 9/30/2006 update: 9/30/2006 Update. (The 12/31/2006 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 2006. The new definition has also been expanded to increase the explanation of the risks that may be involved with investments:

Previous definitions
The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2006, 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.

New definitions
The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2006, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.5% per year (Source: Standard & Poors, www.standardandpoors.com). 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. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect additional sales charges and fees that funds may charge.

This affects the following 50 calculators:

Calculator Type	Name	HTML File Changed
Auto Calculators	Lease vs. Buy	BuyvsLease.html
Business Calculators	Debt Consolidation Calculator	BizConsolidate.html
	Equipment Buy vs. Lease	BizBuyvsLease.html
Credit Cards and Debt Management	Consolidation Loan Investment Calculator	InvestmentDebt.html
Insurance Calculators	Comprehensive Life Insurance Analysis	EnhancedLifeIns.html
	Health Savings Account (HSA) Goal Calculator	HSAGoal.html
	Health Savings Account (HSA) Savings Calculator	HSASavings.html
	Human Life Value	HumanLifeValue.html
	Life Insurance Calculator	LifeInsurance.html
	Variable Annuity Calculator	Annuity.html
Investment Calculators	Annual Stock Option Grants	StockGrants.html
	Investment Loan	InvestmentLoan.html
	Investment Returns	InvestmentReturn.html
	Investment Savings and Distributions	InvestmentDistribution.html
	Mutual Fund Expense Calculator	FundExpense.html
	Stock Option Calculator	StockOptions.html
	Taxable vs. Tax Advantaged Investments	InvestCompare.html
Mortgage Calculators	Rent vs. Buy	MortgageRentvsBuy.html
Retirement Savings and Planning	401(k) Net Unrealized Appreciation vs. Rollover	StockRollover401k.html
	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
	Beneficiary Required Minimum Distributions	RetireBeneficiary.html
	How Important is Social Security?	NoSocial.html
	Individual 401(k) Savings Calculator	RetireSolo401k.html
	Pension Plan Retirement Options	PensionOptions.html
	Required Minimum Distributions	RetireDistrib.html
	Retirement Income	RetirementIncome.html
	Retirement Pension Planner	RetirementPlan3.html
	Retirement Planner	RetirementPlan.html
	Retirement Shortfall	RetireShort.html
	RMD & Stretch IRA Calculator	StretchIRA.html
	Roth 401(k) or Traditional 401(k)?	RothvsTraditional401k.html
	Roth IRA Calculator	RothIRA.html
	Roth IRA Conversion	RothTransfer.html
	Roth vs. Traditional IRA	RothvsRegular.html
	Traditional IRA Calculator	RegularIRA.html
Savings Calculators	Benefit of Spending Less	SpendLess.html
	College Savings	CollegeSavings.html
	College Planner	CollegePlanner.html
	Compare Savings Rates	CompareSavings.html
	Compound Interest and Your Return	CompoundInterest.html
	Cool Million	Millionaire.html
	Don't Delay Your Savings!	WaitCost.html
	Emergency Savings Calculator	Emergency.html
	Lunch Savings	LunchSaver.html
	Savings Calculator	CompoundSavings.html
	Savings Distribution Calculator	DistribSavings.html
	Savings Goals	Savings.html
	Savings, Taxes, and Inflation	SavingsVariables.html

The definition for Inflation and Expected Inflation Rate has been updated to include CPI data from 2006. The CPI for 2006 was reported by the Minneapolis Federal Reserve as 3.3%. 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 2006 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 2006.

This affects the following 17 calculators:

Calculator Type	Name	HTML File Changed
Insurance Calculators	Long Term Care Calculator	LongtermCare.html
	Disability Insurance	Disability.html
	Health Savings Account (HSA) Goal Calculator	HSAGoal.html
	Health Savings Account (HSA) Savings Calculator	HSASavings.html
	Human Life Value	HumanLifeValue.html
	Life Insurance Calculator	LifeInsurance.html
	Investment Returns	InvestmentReturn.html
Investment Calculators	Investment Savings and Distributions	InvestmentDistribution.html
Mortgage Calculators	Rent vs. Buy	MortgageRentvsBuy.html
Retirement Savings and Planning	How Important is Social Security?	NoSocial.html
	Social Security Benefits	SocialSecurity.html
	Retirement Planner	RetirementPlan.html
	Retirement Pension Planner	RetirementPlan3.html
	Retirement Shortfall	RetireShort.html
Savings Calculators	Cool Million	Millionaire.html
	Savings Goals	Savings.html
	Savings, Taxes, and Inflation	SavingsVariables.html

Updates that require modifications to HTML documents

Health Savings Accounts (HSA) Employer Benefit (HSABusiness.html), Health Savings Account (HSA) Contribution Calculator (HSAContribution.html), Health Savings Account (HSA) Goal Calculator (HSAGoal.html), Health Savings Account (HSA) Savings Calculator (HSASavings.html): Have been finalized for 2007 changes. This includes new contribution limits and rules put into law for 2007.
Individual 401(k) Contribution Comparison(Individual401kContribution.html): Has been updated to the new 2007 contribution limits. This affects the calculations and definitions but no new entry our output fields.
Individual 401(k) Savings Calculator(RetireSolo401k.html): Has been updated to the new 2007 contribution limits. This affects the calculations and definitions but no new entry our output fields.
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 2006. Minor changes have occurred to the definitions and the calculations, including additional input and output fields. The 1040EZ and 1040 calculators both automatically calculate Earned Income Credit. (Note: the 2007 versions of these calculators will be release 3/31/2006).
Estate Tax Planning (EstatePlan.html): This calculator has been updated to the 2007 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 2006 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): Each of these calculators has been updated to the new withholding rates as published in IRS Publication 15, Rev Jan. 2007. The associated withholding tables have been updated as well as the calculations. In addition, the definitions have been updated to reflect 2007 changes for the following: 401(k)/403(b) limits, FICA OASDI, $3,400 allowance increased from $3,300.
Retirement Contribution Effects on Your Paycheck (RetirePayrollSavings.html) (RetirePayrollSavings.html): In addition to the Payroll changes described for the calculators above, the contribution limits for retirement plans on this calculator have been updated to $15,500 for 2007.
College Savings (CollegeSavings.html), College Planner (CollegePlanner.html): The definition for tuition, room and board, and education cost inflation have been updated to include the average costs for the 2006-07 school year. The defaults have also been changed to reflect the new average cost for the 2006-07 school year and the average cost increases for tuition and room and board.
401(k) Calculator (Retire401k.html), 401(k) With Profit Sharing (Retire401kProfitShare.html): The definitions and the calculation module have been updated to reflect the new 2007 maximum contribution limits of $15,500 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 2007 maximum contribution limits of $15,500 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 2007 rates.
403b Calculator (Retire403b.html): The definitions and the calculation module have been updated to reflect the new 2007 maximum contribution limits of $15,500 annually for those under 50 and $20,500 annually for those 50 and older.
Pre-tax or Roth (after tax) Account? (RothvsPreTaxAccount.html): The definitions and the calculation module have been updated to reflect the new 2007 maximum contribution limits of $15,500 annually for those under 50 and $20,500 annually for those 50 and older. In addition, the tax table has been updated to use the 2007 rates.
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 2007. This change affects the calculators default values and the definition of Reasonable Interest Rate For January 2007. For January 2007, 120% of the Federal Mid-Term rate was 5.51%.
Roth IRA (RothIRA.html), Traditional IRA (RegularIRA.html), Roth vs. Traditional IRA (RothvsRegular.html): These calculators have been updated to 2007 phase out ranges and the maximum annual contribution of $4,000 per individual under 50 and $5,000 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, FRRetirementPlan.html): The CPP and OAS defaults have been updated to $863 and $491 respectively, to reflect the January 2007 maximum OAS and CPP amounts.

2007 Federal Tax Rate table has been added to the following calculators (replacing the 2006 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, Compare401k.html

Social Security Calculator (SocialSecurity.html), How important is Social Security? (NoSocial.html),Retirement Pension Planner (RetirementPlan3.html), Retirement Planner (RetirementPlan.html): Calculations updated for 2007 income limit of $97,500 for FICA with an annual maximum benefits of $25,392 per year for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum withholding amount for nearly your entire career and retire when your would receive full retirement benefits at age 66 or 67 (depending on your birthdate). This change can significantly increase your estimated Social Security Benefit as compared to previous version of our calculator. The previous version of our calculator capped benefits for married couples at maximum amount paid to a single person (although they would hit this maximum at a lower income level). This change makes the current benefits much more closely match Social Security's computations, however they are much more optimistic than our previous computation.
The definitions of Social Security in each of these calculators has been changed to the following to help explain these details more clearly:
Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits can automatically increase each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that you have only one working spouse. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice - once for each spouse and their respective income. This calculator provides only an estimate of your benefits.
The calculations use the 2007 FICA income limit of $97,500 with an annual maximum Social Security benefit of $25,392 per year for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA salary for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birthdate). Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.

Updates that do not require modifications to HTML documents

Mortgage calculators now allow for 50 year term
All mortgage calculators have been updated to allow terms of up to 50 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

Please note the the default is to only show terms to 40 years. To allow 50 year terms the parameter below will need to be added to each of your mortgage calculator pages:

Please contact us if you would like us to implement this change to your download package for you. If you have subscribed for maintenance updates, there is no charge to turn this feature on.