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16
Dec

What I learned from my grand daughter

Being with the family is generally very enjoyable. This year I received an extra benefit from my 5-year-old granddaughter.  She was telling us what she was going to be doing. It sounded like she was too young to be able accomplish the task. We asked her how she would complete the tasks. She explained that she would visualize what she was going to do.  Her teacher had taught the class to visualize what they want to do.

I realized that is also the approach to planning. If you know what you want to accomplish, you need to see where you are, where you want to be and the steps required to get there. This sets your focus. You need to be aware of your progress. You may need to adjust your course if there are changes in your priorities, what you have or your goals.

If you have postponed your planning, try visualizing.

Wishing you and yours the best for the Holiday’s and the entire New Year!

2
Nov

College Board releases 2016/2017 college cost data.

The College Board has released college cost figures for the 2016/2017 college cost data in its annual Trends in College Pricing report. “Total average cost” includes tuition and fees, room and board, books, transportation, and personal expenses. Here are the highlights:

Public colleges (in-state students):

  • Tuition and fees increased an average of 2.4% to $9,650
  • Room and board increased an average of 2.9% to $10,440
  • Total average cost for 2016/2017: $24,610 (up from $24,061 in 2015/2016)

Public colleges (out-of-state students):

  • Tuition and fees increased an average of 3.6% to $24,930
  • Room and board increased an average of 2.9% to $10,440
  • Total average cost for 2016/2017: $39,890 (up from $38,544 in 2015/2016)

Private colleges:

  • Tuition and fees increased an average of 3.6% to $33,480
  • Room and board increased an average of 3.0% to $11,890

Total average cost for 2016/2017: $49,320 (up from $47,831 in 2015/2016)

Link to “Trends in College Pricing 2016” https://trends.collegeboard.org/sites/default/files/2016-trends-college-pricing-web_0.pdf

College costs are a major expense. Understanding the current cost will help to plan how to meet the costs in the future. The information can also be helpful to grandparents in their gift planning.

One way to fund college expenses is to use a  “529” plan. These are offered by state or educational institutions. Earnings are not subject to federal tax and generally are not subject to state tax when used for “qualified education expenses” of the “designated beneficiary”. Some states offer tax incentives for state residents that  contribution to the plans in their states.

Not everyone should use a 529 plan.  Review the alternatives, benefits and drawbacks to determine if 529 plans should be part of your planning.

5
Oct

October Is National Disability Employment Awareness Month

Observed each year in October, National Disability Employment Awareness Month (NDEAM) is led by the Department of Labor’s Office of Disability Employment Policy (ODEP). The purpose of NDEAM is to build awareness about disability employment issues and celebrate the many and varied contributions of workers with disabilities.  This year’s theme is “InclusionWorks.”

Employers, associations, and unions in all industries are encouraged to participate. To help organizations build awareness of this  important initiative, the DOL has developed a number of resources, which can be accessed at dol.gov/odep/topics/ndeam/.

What is NDEAM?
National Disability Employment Awareness Month dates back to 1945, when Congress enacted a law declaring the first week in October “National Employ the Physically Handicapped Week.” In 1962, the word “physically” was removed to acknowledge the employment needs and contributions of individuals with all types of disabilities. In 1988, Congress expanded the week to a month and changed the name to National Disability Employment Awareness Month.

“By fostering a culture that embraces individual differences, including disabilities, businesses profit by having a wider variety of tools to confront challenges,” said Jennifer Sheehy, deputy assistant secretary of labor for disability employment policy. “Our nation’s most successful companies proudly make inclusion a core value. They know that inclusion works. It works for workers, it works for employers, it works for opportunity, and it works for innovation.”

How can organizations participate?
The DOL’s suggestions range from simple promotional activities, such as putting up a poster, to comprehensive programs, such as implementing a disability education program for all employees or organization members. Resources available on the website include press releases, posters, a sample proclamation for organizational and government leaders, articles for internal publications, sample social media content, and tips for improving social media accessibility.

What is the ODEP?
The Office of Disability Employment Policy  is the only nonregulatory federal agency that promotes policies and coordinates with employers and all levels of government to increase workplace success for people with disabilities. Recognizing the need for a national policy to ensure that people with disabilities are fully integrated into the 21st century workforce, the Secretary of Labor delegated authority and assigned responsibility to the Assistant Secretary for Disability Employment Policy. ODEP is a subcabinet-level policy agency in the Department of Labor.

For more information on ODEP, visit dol.gov/odep/.

27
Sep

IRS Announces New Waiver Procedure for Taxpayers Who Inadvertently Miss the 60-day Rollover Deadline

Background–direct and indirect (60-day) rollovers
If you’re eligible to receive a taxable distribution from an employer-sponsored retirement plan (like a 401(k)) you can avoid current taxation by directly rolling the distribution over to another employer plan or IRA (with a direct rollover you never actually receive the funds). You can also avoid current taxation by actually receiving the distribution from the plan, and then rolling it over to another employer  plan or IRA within 60 days following receipt (a “60-day” or “indirect” rollover). But if you choose to receive the funds instead of making a direct rollover the plan must withhold 20 percent of the taxable portion of your distribution, even if you intend to make a 60-day rollover. (You’ll need to make up those withheld funds from your other assets if you want to roll over the entire amount of your plan distribution.)

Similarly, if you’re eligible to receive a taxable distribution from an IRA, you can  avoid current taxation by either transferring the funds directly to another IRA or to an employer plan that accepts rollovers (sometimes called a “trustee-to-trustee transfer”), or by taking the  distribution and making a 60-day indirect rollover (20% withholding doesn’t apply to IRA distributions).

Under recently revised IRS rules you can make only one tax-free, 60-day, rollover from any IRA  you own (traditional or Roth) to any other IRA you own in any 12-month period. However, this limit does not apply to direct  rollovers or trustee-to-trustee transfers (or to Roth IRA conversions). Because of the 20% withholding rule, the one-rollover-per-year rule, and the possibility of missing the 60-day deadline, in almost all cases you’re better off making a direct rollover or trustee-to-trustee transfer to move your retirement plan funds from one account to another.
 

Exceptions to the 60-day rollover deadline
But what happens if you do receive an actual distribution from your employer plan or IRA and you want to roll over the funds, but you’ve missed the 60 day deadline? There are limited statutory exceptions to the 60-day rule. For example, the time for making a rollover may be extended for those serving in a combat zone or in the event of a presidentially declared disaster or a terrorist or military action.

But the IRS also has the authority to waive the 60-day limit “where the failure to waive such requirement would be against equity or good conscience, including casualty, disaster, or other events beyond the [individual’s] reasonable control.” To seek a waiver you previously had to  request a private letter ruling from the IRS. However, the IRS has just announced (in Revenue Procedure 2016-47) a simpler alternative to seeking a private letter ruling.

The new waiver alternative: “self-certification”
Under the new procedure, if you want to make a rollover but the 60-day limit has expired, you can simply send a letter (the Revenue Procedure contains a sample)  to the plan administrator or IRA trustee/custodian certifying that you missed the 60-day deadline due to one of the following 11 reasons:

  1. The financial institution receiving the contribution, or making the distribution to which the contribution relates, made an error.
  2. You misplaced and never cashed a distribution made in the form of a check.
  3. Your distribution was deposited into and remained in an account that you mistakenly thought was an eligible retirement plan.
  4. Your principal residence was severely damaged.
  5. A member of your family died.
  6. You or a member of your family was seriously ill.
  7. You were  incarcerated.
  8. Restrictions were imposed by a foreign country.
  9. A postal error occurred.
  10. Your distribution was made on account of an IRS tax levy and the proceeds of the levy have been returned to you.
  11. The party making the distribution delayed providing information that the receiving plan or IRA needed to complete the rollover, despite your reasonable efforts to obtain the information.

To qualify for this new procedure, you must make your rollover contribution to the employer plan or IRA as soon as practicable after the applicable reason(s) above no longer prevent you from doing so. In general, a rollover contribution made within 30 days is deemed to satisfy this requirement.

Effect of self-certification
It’s important to understand that this new self-certification process is not an automatic waiver by the IRS of the 60-day rollover requirement. The self-certification simply allows you and the financial institution to treat and report the contribution as a valid rollover. However, if you’re subsequently audited, the IRS can still review whether your contribution met the requirements for a waiver.

For example, the IRS may determine that the requirements for a waiver were not met because (1) you made a material misstatement in the self-certification, (2)  the reason(s) you claimed for missing the 60-day deadline did not prevent you from completing the rollover within 60 days following receipt, or (3) you failed to make the contribution as soon as practicable after the reason(s) no longer prevented you from making the contribution. In that case, you may still be subject to additional income taxes and penalties. Because of this potential risk, some taxpayers may still prefer the certainty of a private letter ruling from the IRS waiving the 60-day deadline,  despite the additional time and expense involved.

Remember, you can make only one tax-free, 60-day, rollover from any IRA you own (traditional or Roth) to any other IRA you own in any 12-month period. This limit does not apply to direct  rollovers or trustee-to-trustee transfers (or to Roth IRA conversions).

Also keep in mind that you can generally leave your funds in a 401(k) or similar plan (at least until the plan’s normal retirement age) if your vested account balance at the time you terminate employment exceeds $5,000.

 

The foregoing is provided for information purposes only.  It is not intended or designed to provide legal, accounting, tax, investment or other professional advice.  Such advice requires consideration of individual circumstances.  Before any action is taken based upon this information, it is essential that competent, individual, professional advice be obtained.  JAS Financial Services, LLC is not responsible for any modifications made to this material, or for the accuracy of information provided by other sources.
22
Sep

IRS warning about fake emails(CP2000) relating to the Affordable Care Act

Confronting the latest scheme to target taxpayers, the IRS and its Security Summit partners warned Thursday that scammers have sent fake emails purportedly containing CP2000 notices, which are used in the IRS’s Automated Underreporter Program. The IRS emphasized that it never sends these notices by email, and instead uses the U.S. Postal Service (IR-2016-123).

The notices contain an IRS tax bill supposedly related to the Patient Protection and Affordable Care Act and 2014 health care coverage. They use an Austin, Texas, post office box and request payments to the “I.R.S.” at the “Austin Processing Center.” The email also contains a payment link. The fraudulent email lists the letter number as “105C.”

The IRS explains that its procedures for taxpayers who owe additional tax require taxpayers to write checks payable to the “United States Treasury,” not the “I.R.S.,” as in the fake notice. It also advises taxpayers that they can check a notice’s validity on the IRS’s website by doing a search, and they can see sample notices at Understanding Your IRS Notice or Letter.

IRS impersonation scams take many forms: threatening telephone calls, phishing emails and demanding letters. Learn more at Reporting Phishing and Online Scams.

Taxpayers  who receive this scam email should forward it to

ph******@ir*.gov











 and then delete it from their email account.

Taxpayers  should always beware of any unsolicited email purported to be from the IRS or any unknown source. They should never open an attachment or click on a link within an email sent by sources they do not know.

20
Sep

New Real Estate Sector Puts Equity REITs in the Spotlight

Publicly traded REITs and other listed real estate companies are being moved to a distinct Real Estate sector by S&P Dow Jones Indices and MSCI.

S&P Dow Jones Indices and MSCI recently moved publicly traded equity real estate investment trusts (REITs) and other listed real estate companies from the Financials sector into a new, separate Real Estate sector effective September 1, 2016. (Mortgage REITs remain in the Financials sector, along with banks and insurance companies.)  There are now 11 headline sectors instead of 10. It’s the first time a new sector has been added to the Global Industry Classification  Standard (GICS®) since it was created in 1999. (1)

The move has implications for investors, because S&P and MSCI   indexes are common benchmarks for investment performance, and the GICS is often used as a framework for portfolio construction. By some estimates, fund managers could shift as much as $100 billion to the Real Estate sector in a collective effort to follow the market weightings of various indexes. (2)

The change could also affect the asset allocation decisions of some individual investors by drawing more attention to equity REITs as income-generating assets with the potential for capital appreciation.

Fixed-income appeal

An equity REIT is a company that combines capital from investors to buy and manage income properties such as apartments, shopping centers, hotels, medical facilities, offices, self-storage units, and industrial buildings. Publicly traded REIT shares can generally be bought or sold on an exchange at a moment’s notice, making them more liquid than physical real estate investments, which involve transactions that can take months to complete.

Many REITs generate a reliable income stream regardless of share price performance, primarily because they are required by law to pay out 90% of their taxable incomes as dividends to stakeholders. In the second quarter of 2016, the S&P REIT index had a dividend yield of 3.73%. (3) The performance of an unmanaged index is not indicative of the performance of any specific security. Individuals cannot invest directly in an index.

REIT share prices can be sensitive to interest rates. As rates rise, steady dividends may appear less attractive to investors relative to the safety of bonds offering similar yields. On the other hand, current fundamentals, including modest economic growth, lower unemployment, and rising rents, are generally seen as positive conditions for REITs and other real estate businesses.

Diversification tool

Breaking real estate out of the Financials sector acknowledges that the industry’s business models and ties to underlying property markets produce a distinctive risk-return profile, including a relatively low correlation to the rest of the stock market. (4) Because the share prices of equity REITs don’t rise and fall in lockstep with the broader stock market, including them in your portfolio could help reduce the overall level of risk.

The return and principal value of all stocks, including REITs, fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Diversification and asset allocation do not guarantee a profit or protect against investment loss; they are methods used to help manage investment risk.

REIT distributions are taxable to the extent they include any ordinary income and capital gains. Some REITs may not qualify as a REIT as defined in the tax code, which could affect operations and negatively impact the ability to make distributions.

There are inherent risks associated with real estate investments that could have an adverse effect on financial performance. Such risks may include a deterioration in the economy or local real estate conditions; tenant defaults; property mismanagement; and changes in operating expenses (including insurance costs, energy prices, real estate taxes, and the cost of compliance with laws, regulations, and government policies).

Breaking real estate out of the Financials sector acknowledges that the industry’s business models and ties to underlying property markets produce a distinctive risk-return profile, including a relatively low correlation to the rest of the stock market.

(1) , (3) S&P Dow Jones Indices, 2015-2016
(2) Investor’s Business Daily, March 18, 2016
(4) FinancialAdvisor.com, March 1, 2016

The foregoing is provided for information purposes only.  It is not intended or designed to provide legal, accounting, tax, investment or other professional advice.  Such advice requires consideration of individual circumstances.  Before any action is taken based upon this information, it is essential that competent, individual, professional advice be obtained.  JAS Financial Services, LLC is not responsible for any modifications made to this material, or for the accuracy of information provided by other sources.

 

 

 

 

27
Jun

The British Are Leaving! Why the Brexit Matters to Investors

Here’s an overview of the economic issues surrounding the Brexit, and what this historic

decision could mean for the United Kingdom, world trade, and international investors.

On June 23, citizens of the United Kingdom (England, Scotland, Wales, and Northern

Ireland) voted to leave the European Union by a margin of 52% to 48%.1 Though pre-election

polls suggested that public opinion was evenly divided, when the election results became

clear, financial markets around the world reacted swiftly to concerns about potential economic

ramifications of a British exit—or Brexit—from the EU.

On June 24, the British pound plunged more than 10% against the dollar to its lowest point

since 1985, before recovering slightly to settle nearly 8% lower at the end of the day.2 European

stocks suffered the worst sell-off since 2008, with the Stoxx Europe 600 Index tumbling 7%, and

the Japanese Nikkei Index posted a one-day drop of 7.9%.3–4 In the United States, the S&P 500 Index fell 3.6%, reversing year-to-date gains.5
Here’s an overview of the economic issues surrounding the Brexit, and what this historic

decision could mean for the United Kingdom, world trade, and international investors.

The EU and the Referendum

The European Union was formed after World War II to help promote peace through

economic cooperation. Over time, it became a common market, allowing goods and people to

move freely around 28 member states as if they were one country. The U.K. joined the trading

bloc in 1973, when there were only 9 member states.

In 2012, Prime Minister David Cameron rejected calls for a referendum on EU membership

but later agreed to hold one if the Conservative party won the 2015 election.6 The leaders of

all five major political parties campaigned to remain in the EU, including Cameron, warning

voters that leaving the EU was a leap into the unknown that could damage the U.K.’s economy

and weaken national security.7

Brexit supporters said leaving the EU allows the nation to take back control over business,

labor, and immigration regulations and policies. They also claimed the money being

contributed to the EU budget (a net contribution of 9.8 billion pounds in 2014) would be better

spent on infrastructure and public services in the U.K.8

Economic Expectations

The negative outlook for the U.K. economy depends on the terms of trade deals yet to

be negotiated with the EU and other nations. For example, the International Monetary Fund

(IMF) projects that U.K. gross domestic product could decline about 1.5% by 2021, assuming

the United Kingdom is granted access to the EU market quickly. Under a more adverse

scenario (which assumes trade defaults to World Trade Organization rules), the IMF projects a

precarious decline in GDP of about 4.5%.9

 

The U.K.’s departure strikes a serious blow to the EU, which has been beleaguered by debt

crises, a Greek bailout, the influx of millions of refugees, high unemployment, and weak GDP

growth. If trade activity and business conditions in the region deteriorate, it’s possible that the

U.K. and the EU could fall back into recession.


Next Steps

 Once Article 50 of the Lisbon Treaty is invoked, the formal process of leaving the EU will

begin, opening up a two-year window of negotiations on the terms of the exit. The U.K. will

remain a member of the EU until it officially departs.10
The U.K. is the first nation to break away from the EU, but a larger concern is that anti-EU

factions in other nations could be empowered to follow suit. Moreover, Scotland could seek

independence from the U.K. in order to remain in the EU, and Northern Ireland might consider

reunification with the Republic of Ireland.11


What About Us?

The EU is the largest trading partner of the United States, so the Brexit complicates

pending trade negotiations and will require adjustments to existing agreements. It may also

take time to forge new deals with the U.K.12
U.S. companies with a significant presence in the U.K. could take a hit. With the British

pound weakening against an already strong dollar, U.S. exports become more expensive,

reducing foreign sales. The U.S. economy is not as vulnerable as the EU, but the U.S. Federal

Reserve may be more likely to delay its decision to raise interest rates until the consequences

of the Brexit on U.S. and global markets can be assessed.13
Brexit-related anxiety could continue to spark market volatility until the details are finalized

and the economic fallout is better understood, possibly for several years. Having a sound

investing strategy that matches your risk tolerance could prevent you from making emotional

decisions and losing sight of your long-term financial goals.

 

Investments are subject to market fluctuation, risk, and loss of principal. Investing internationally

carries additional risks such as differences in financial reporting, currency exchange risk, as well as economic

and political risk unique to a specific country. This may result in greater share price volatility.

Shares, when sold, may be worth more or less than their original cost. The performance of an unmanaged

index is not indicative of the performance of any specific security. Individuals cannot invest in any

index.

1-2, 7, 10-11) BBC News, June 24, 2016

3, 5) Bloomberg.com, June 24, 2016

4) Reuters, June 24, 2016

6) The New York Times, June 25, 2016

8) CNNMoney, June 2, 2016

9) International Monetary Fund, 2016

12-13) The Wall Street Journal, June 24, 2016

 

The foregoing is provided for information purposes only.  It is not intended or designed to provide legal, accounting, tax, investment or other professional advice.  Such advice requires consideration of individual circumstances.  Before any action is taken based upon this information, it is essential that competent, individual, professional advice be obtained.  JAS Financial Services, LLC is not responsible for any modifications made to this material, or for the accuracy of information provided by other sources.

 

 

13
Apr

Federal Income Tax Returns Due

The federal income tax filing deadline for most individuals is Monday, April 18, 2016. That’s because Emancipation Day, a legal holiday in Washington, D.C., falls on Friday, April 15, this year. If you live in Massachusetts or Maine, you have until Tuesday, April 19, to file your return because Patriots’ Day, a legal holiday in both states, is celebrated on April 18.

Not ready to file?
You can file for an extension using IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Filing this extension gives you an additional six months (until October 17, 2016) to file your federal income tax return. You can also file for an automatic six-month extension electronically (details on how to do so can be found in the Form 4868 instructions).

Outside of the country?
Special rules apply if you are living outside of the county, or serving in the military outside the country, on the regular due date of your federal income tax return.

Pay what you owe by the due date of the return.
Filing for an automatic extension to file your return does not provide any additional time to pay your tax. Make the best estimate you can of the amount you owe. You should pay the estimated amount by the April 18 (April 19 if you live in Massachusetts or Maine) due date. If you don’t, you will owe interest, and you may owe penalties as well. If the IRS believes that your estimate of taxes was not reasonable, it may void your extension.

Do not make the mistakes of thinking you do not have to pay any tax until you file your tax return.  If you absolutely cannot pay what you owe, file the return and pay as much as you can afford. You’ll owe interest and possibly penalties on the unpaid tax, but you will limit the penalties assessed by filing your return on time, and you may be able to work with the IRS to pay the unpaid balance (options available may include the ability to enter into an installment agreement).

 

19
Mar

When investing should you follow your gut?

Jason Zweig’s Wall Street Journal March 18, 2016 article, “The Three Worst Words of Stock-Market Advice: Trust Your Gut” is insightful.  The substance of the article is stated in a quote from Benjamin Graham’s book, “…The investor’s chief problem-and even his worst enemy-is likely to be himself.”

The article references research by “…finance professors William Goetzmann and Robert Shiller of Yale, along with Dasol Kim of Case Western Reserve University, have analyzed the Yale surveys and found that investors’ forecasts regularly look more like aftercasts—simple projections of the recent past into the future.”

“Prof. Shiller… has been surveying investors about their expectations since 1989.” One question is…What are the odds of a one-day crash of at least 12% in the U.S. stock market over the next six months? The probable answer was about 10 times the probability. “Remarkably, professional investors exaggerate the odds almost as badly as individual investors do.” “What’s more, the new study suggests, you probably should have put higher odds on an imminent crash back in January than you would now or would have six months or a year ago. That is partly because a sharp recent drop makes future declines seem more probable, and partly because the news media uses words like “crash” much more often after the market falls sharply.” “Naturally, investors tend to be complacent when they should be worried and afraid when they should be optimistic.”

“Words charged with negative emotion not only darken your view of the future, but they may make you feel that riskier investments have a lower—rather than a higher—potential return.”

“Dates like Oct. 28, 1929, and Oct. 19, 1987, when the Dow Jones Industrial Average fell 13% and 23% respectively, can “evoke a sense of doom,” says Prof. Goetzmann of Yale. ‘Crashes have a remarkably long life in the public imagination. Their echoes can last for decades’.”

Having a plan with a target allocation can help restrain reacting to your gut.  This provides a map to achieve your financial goals.  Your plan should be reviewed when your goals, priorities or circumstance change.  You should review your investments periodically to see if they still fit the reason you chose the investment.   There is not a consensus of how frequently you should review your plan and investments. Making changes too frequently is trading rather than investing.  Very few are consistently successful at trading.  There are costs and possible tax consequences when trading. Your plan should identify when the investment should be adjusted to meet your target (rebalancing). Set a percent or dollar amount of change that would justify rebalancing.

Generally rebalancing will increase the long-term performance.  Waiting too long can reduce your returns.

22
Feb

Highlights from various articles of note

Target Date Funds:
An article by John Sullivan in the inaugural issue of “401k Specialist” discussed Target Date Funds (TDF).  The article is based on a panel discussion at the 2015 Morningstar Investment Conference.   Initially these funds were disappointing.  One area of concern related to asset-class diversification. The question was not just about the ratio of stocks to bonds.  The portion in domestic, foreign and alternative investments was also a concern.  Another area requiring improvement was how the mix of assets changed over time and during retirement.

TDFs have improved since their introduction. Three companies account for 70% of the assets in these funds.  At one point they accounted for 80%.  Only one firm had funds (3) in the highest 10 performing funds.  The other top performing TDF’s were from 2 other firms.

The greatest benefits of TDFs from my viewpoint is the improvement in investor behavior.   “Investors are using them well.  They don’t exhibit the typical behaviors of fear and greed with target date funds, and as a result stay the course and remain invested longer.”

Not all TDFs are the same.  You want one that is consistent with your situation and your plan.

Retirement Planning Calculators:
This is the subject of a Wall Street Journal article, “New Study Questions Retirement Planning Calculators’ Accuracy.” This article was update online Feb. 22, 2016.

The article discusses an academic study of 36 retirement planning calculators.  “… ‘in most cases, the available offerings are extremely misleading ‘ and generally not helpful to consumers trying to figure out if they will have enough money to cover their expenses for the rest of their lives.”

The study was based on “… a hypothetical couple in their late 50s earning $50,000 each and aiming to retire at ages 65 and 63.”  The calculators were described as “…free and low-cost…” The cause of the misleading results was the limited amount of information used by the calculators.

“…the researchers identified a list of more than 20 factors they believe should be included…”

Do not use the simplest calculator available.  Pick one that has many questions.  Also review the assumptions they are using.  All calculators are use assumptions.  Some assumptions to all calculators are: life expectancy, health, inflation rates, investment returns.  Other questions would include the amount of your current investments and amounts you are currently savings.