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A new retirement calculator from BlackRock...
Old 08-01-2013, 09:06 PM   #1
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A new retirement calculator from BlackRock...

Just starting to investigate this, but it looks like it might be another useful tool to generate datapoints

How Long Will Your Retirement Savings Last? - Total Return - WSJ
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Old 08-01-2013, 09:27 PM   #2
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I don't understand this calculator. First, I'm only allowed to use it if I'm at least 55 years old. And then, all it asks me is how much I have saved, and it spits out a retirement income number. Plugging in $1M yields $77,700, or over 7% WR. No where does it ask me how my money is invested, how long I plan to live, or any other relevant variables.

If I was a subscriber to the WSJ I guess I could ready the story behind the calculator.
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Old 08-01-2013, 09:34 PM   #3
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Still trying to figure out, but I think the gist of it is that that BlackRock looks at a series of factors (inflation, interest rate futures, longevity) to project what your assets will generate x years out in the future. Hence the reason it only works if you are 55 or older. Ultimate, they are working toward (already created?) index funds that you can buy today to generate future earnings.

There is a video on the CORI page that explains the components.

Here is another article on the calculator: http://blogs.marketwatch.com/encore/...-nest-egg-pay/
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Old 08-01-2013, 10:43 PM   #4
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Seems like a snazzy marketing tool for Blackrock. By not including SS or pensions or variables of any sort except for their wonderful black box, it may alarm some people into buying a mutual fund from them.

On the other hand, if you don't have any retirement savings to enter into the calculator, maybe you do need to buy a mutual fund from somebody.
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Old 08-02-2013, 04:19 AM   #5
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Watched the cory video...It spits out retirement income starting at 65 based on the current age(55-64) you put in the calculator. Nothing new for early retiree but I guess basic 30 years retirement income starting at age 65.
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Old 08-02-2013, 04:47 AM   #6
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it must be based on annuities because it shows around a 5.5 % withdrawal rate.
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Old 08-02-2013, 09:02 AM   #7
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Interesting tool but I agree it seems way too simple. When I use it I feel like there's someone wispering "pay no attention to the man behind the curtain."
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Old 08-02-2013, 09:24 AM   #8
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IMHO there are a lot better options out there than this one from BlackRock.
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Old 08-02-2013, 09:41 AM   #9
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According to this, I'm filthy rich as long as I live like a pauper for the next 10 years.

(Plugged in 55... not sure what it is expecting me to do for next 10 years)
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Old 08-02-2013, 09:53 AM   #10
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The FAQ's page gives some insight into what they are pitching. It is clearly intended to encourage you to pick up the phone and call Black Rock to discuss your investment strategy, and ultimately to invest in Black Rock funds.

It has no provision to enter additional savings per year, or to modify the investment profile, so I would say it's nothing more than a gimmicky tool to get you to call Black Rock. And hey, if they really have a plan to create a 7-8% annuity stream, the curiosity in me almost wants to call them to say "what's up with that?"

I suppose if the long term average return on equities is 8-9%, and you ignore sequence of returns, you could argue there is some rationality to it. But that is a big thing to ignore.
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