Kent Irwin, who recently wrote a guest article: Is Suze Orman Right, Can You Be Your Own Financial Planner?, sent me a free license to use his eFinPLAN online financial planning software. In this post, I am going to provide you with my initial experience, and I will follow up with a second post to discuss the 64-page report I received — yes, 64 pages!
Before I begin, I will share a few things I didn’t like — the interface and usability. It is an old school web site that doesn’t have the crisp Web 2.0 look and feel. Also, I felt the web site navigation could be clearer and more intuitive.
Now with the negatives out of the way, let me walk you through the 10 steps I took to get my 64-page personalize financial report.
First the software asks for some basic information like names, birth dates, annual income levels, marital status, state of residence, average tax rate (using their marginal and average tax rate calculator), and number of children.
Next the software asks for retirement and non-retirement assets, including what you currently have, and your planned yearly contribution to each. The list includes:
This is part B of step #2 where you’ll have a chance to list additional assets and liabilities
This step was easy for me because I have been keeping track of these numbers in NetworthIQ, so all I needed to do was transferring the information over.
This is where you can enter information about your pension and social security benefits. I don’t have this information handy so I just skipped to the next step.
This is a nice feature since I don’t have to know everything to get started. I can always come back to enter more information to improve my report’s accuracy later.
This step asks for annual living expenses, future large purchases, and special income.
Finding out my annual living expenses would have been difficult since I don’t budget. Luckily, I have my information entered in Mint.com (a free online money management software). To find out my annual living expense I just: log in, go to trend, click on “Past 3 months”, and multiply that number by 4.
I left the future large purchases and special income empty at this point.
This is a “personalize” step where the software asks about:
Here are some of the answers I chose:
Another personalization step that asks you about:
This step asks you about insurances that you have including:
This step asks questions about your child expected college expenses (in today’s dollar), and the college savings plan that you have in place — i.e., 529, UGMA/UTMA, Coverdell, Savings, Bonds, and other.
I felt bad about this step, because I don’t have any of the important documents listed. These documents include:
However, I am planning to fix this shortly. I have been meaning to do a review of Suze Orman’s Will & Trust Kit, and this just motivated me to get to the review sooner.
This step asks questions about your current financial advisors and insurance agent (if any). If you don’t have an advisor or an agent (or if you are unhappy with them), you can ask for referrals through eFinPLAN.
In this last step, the software asks you about the expected life expectancy of you and your spouse, expected rate of inflation, inclusion of college expenses and expected large purchases, projected expenses as a percentage of current expenses, assumed rates of return, and increase rates of annual contributions.
It took me about an hour to complete the 10 steps above. But it may take you longer depending on how prepared you are with the various information, and your familiarity with your finances.
To get your personalized report, just click on the “Generate Your Report” then “View Your Report”. Viola, a 64-page personalized financial planning report (the number of pages may vary).
After the report, there’s an additional “What if?” step that allows me to tweak my numbers; otherwise, I can always go back and play around with them until I am satisfied.
If you decide to purchase the eFinPLAN Financial Planning Software, please use this eFinPLAN link and enter the coupon code moola1 to get a 10% discount.