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Can you afford to retire?

By Ashley Thiesen Caldwell | November 16, 2009

If you’re nearing retirement and unsure if you’re ready, or able, to retire in this economy, there is help. Numerous financial companies are developing retirement plans that can assist you with these ever-important decisions. Fidelity, Vanguard, Nationwide, and Schwab are the leading companies offering these retirement plans.

The companies have developed programs that offer, at little or no cost, a detailed assessment of whether you’re in danger of outliving your savings. You’ll also receive detailed advice as to how to effectively budget and manage your nest egg.

The companies generally pair you with a financial planner who goes over your current finances along with your retirement goals. The program is very involved and may take hours to complete. However, the end result will focus on saving and investing, which obviously coincide with the financial company’s offered services.

Fidelity’s retirement income planner is free of charge and is suited mainly for those within five years of retirement. The detailed questionnaire is very time consuming, taking approximately 90 minutes to complete. Consequently, if you already have a budget worked out, a shorter version of the questionnaire is available.

Vanguard’s financial plan is free for people who have at least $500,000 with Vanguard or those who move $100,000 or more to Vanguard. For others, the cost is $250 if you have an existing balance of $100,000 to $500,000, or $1000 for those with less. Vanguard’s process is highly efficient with a 30-minute questionnaire.

Nationwide offers their RetireSense program is aimed at those ages 55 to 70 and is completely free. The only expenses would be commissions paid if you buy or sell investments. Nationwide has a rather short, one-page questionnaire, along with a three-page budget worksheet. One flaw with the program is that it doesn’t account for taxes as it is mainly focused on retirement income.

Schwab’s real life retirement services are free to those with brokerage or 401(k) accounts at Charles Schwab. The plan involves an optional nine-question survey along with an in-depth consultation with a financial advisor. Schwab sends clients quarterly reports that track whether investment held at the firm are allocating according to plan.

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