The quarterly update for 12/31/2008 is a large update, affecting almost every calculator. The majority of the changes affect the functionality of the calculations, updating them to 2009 rules and regulations. The most significant calculation 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 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 9/30/2009 update: 9/30/2008 Update. (The 12/31/2008 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*:
*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 can 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.
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" button under the Browsing History section. Click the top button "Clear private data now..." 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.
Firefox and Netscape:
Choose "Clear private data..." under the "Tools" menu. Check the box for "Cache" and then click the button "Clear private data now".
All default rates of return have been made consistent across all calculators (Savings, Investment, Retirement and certain Mortgage and Loan calculators where investment rates are required). The following rates are now used:
Your specific calculator build can indicate the specific rate of return you would like to use for each of the above categories. If you wish to change your default rate of returns please contact us via email with your required rates of return.
New definition:
The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2008, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 9.7% (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, from June 1982 through June 1983. The lowest 12-month return was -39%, which happened twice, once from September 1973 to September 1974 and again from November 2007 to November 2008. Savings accounts at a bank may pay as little as 1% or less but care significantly lower risk to loss of principal balances.
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 generally 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 sales charges and other fees that funds and/or investment companies 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 | |
| Retirement Nestegg | RetireNestegg.html | |
| Retirement Number | RetireNumber.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 | |
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 2008. The CPI for 2008 was 4.0%, as reported by the Minneapolis Federal Reserve.
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 |
|---|
| U.S. Undergraduate College Costs for 2008-09 School Year Source: College Board's 2008 Trends in College Pricing, www.collegeboard.com | ||||
| Type | Tuition and fees | Room & Board | Total | Change from 2007-08 |
|---|---|---|---|---|
| Public 4-Year (in-state tuition) | $6,585 | $7,748 | $14,333 | 5.7% |
| Public 4-Year (out-of-state tuition) | $17,452 | $7,748 | $25,200 | 5.2% |
| Private 4-Year | $25,143 | $8,989 | $34,132 | 5.6% |
If your income falls in a "phase-out" range you are allowed only a prorated Roth IRA contribution. If your income exceeds the phase-out range, you do not qualify for any Roth IRA contribution. The table below summarizes the income "phase-out" ranges for Roth IRAs.
| Tax filing status | 2009 Income Phase-Out Range |
| Married filing jointly or Head of household | $166,000 to $176,000 |
| Single | $105,000 to $120,000 |
| Married filing separately* | $0 to $10,000 |
| 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 |
| Pre-tax or Roth (after tax) Account? | RothvsPreTaxAccount.html |
| 401(k) Spend It or Save It Calculator | Rollover401k.html |
NOTE:The actual tax calculators will be updated at the end of the tax season, in the 3/31/2009 update.
The definitions of Social Security in each of these calculators has been updated to the following:
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 automatically increases 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 only one of the spouses work. 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 2009 FICA income limit of $106,800 with an annual maximum Social Security benefit of $27,876 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.