How To Plan For Retirement

By Michelle Hainer

Maryann Yurczyk of Ballston Spa, New York, is no stranger to online banking. Every month she uses MyCheckFree to pay her bills on time. But, until a few years ago, to manage her 401(k) retirement savings account, she still needed to go through her company's administrators. That all changed when her employers made her retirement accounts accessible online via American Funds. Now when Yurczyk wants to move her money around, she can log on and do it herself.

"I can see my money more readily and follow its growth," says Yurczyk, who often rebalances her portfolio. "I'm so much more in tune with my investments now that I can manage them myself."

Being savvy about retirement savings doesn't take a degree in investment banking, and there are plenty of web- and computer-based tools that can help. Here are some steps to get you started:

Tip No. 1: Use a financial calculator  Many online financial calculators can run through hundreds of potential investment scenarios in a split second -- and then tell you what your odds are of meeting your retirement goals based on your current savings rate. "Planning for retirement comes down to figuring how much you need to set aside now," says Kimberly Lankford, a columnist for Kiplinger’s web site, and author of Ask Kim For Money Smart Solutions (Kaplan Publishing).  Financial calculators "offer a huge wake up call and you'll really get a handle on what you need to do." Check with your 401(k) administrator first to find out what type of calculators they offer their customers at no charge. Or try logging on to FinancialEngines, which offers retirement planning tools for around $150 per year. For those who have already reached retirement, check out investment managers T. Rowe Price, which provides an income calculator that shows at what pace to withdraw money so you won't run out.

Tip No. 2: Get your monthly finances in order  Do you frequently pay your bills late because they're lost in a sea of unopened mail? Are receipts spilling out of your wallet and purse? Software like Quicken or Microsoft Money can help you get organized fast. These programs allow you to access your online financial accounts, pay bills, and even download credit card or bank statements. If you have retirement accounts or stocks, these can also be downloaded, allowing you to track your entire portfolio at once. For those with a newer computer, financial software may have come with the setup. Otherwise, you can purchase it at the Quicken Intuit web site or the Microsoft Money web site.

Tip No. 3: Take advantage of your investment firm's tools  Most firms like Fidelity, T. Rowe Price and Vanguard offer excellent online financial planning services to their customers. "They can set up a plan for you and even give you phone support if you're having trouble managing your accounts online," Lankford says. If your retirement portfolio includes stocks, try managing and trading them through online brokerage firms like TDAmeritrade or Muriel Siebert and Co., which charge lower fees than a live broker. "They have really great deals and low fee IRAs," Lankford says. "The tradeoff is you really need to do the research on your own." To find out which online broker is best for you, log on to Kiplinger.

Now that Yurczyk is in control of her nest egg, she says her financial future feels secure: "Getting started was the hardest part, but I'm so happy that I did." Next she hopes to learn how to use Quicken to speed up her retirement savings progress.