SERVICE
With the emergence of 401(k) plans, Americans are taking more nominal responsibility than ever for their own retirement. But most folks don't have time to research investment choices - let alone make savvy decisions about them. Now, a new Net-based application called Financial Engines promises to help you save for your golden years.
Founded by Nobel Prize-winning economist William Sharpe, Financial Engines takes your portfolio - including stocks, savings, and specific funds in a 401(k) - and projects it years into the future. Modeling software exposes it to hundreds of thousands of realistic scenarios - such as fluctuations in inflation, interest rates, returns, and dividends - and then forecasts the range of your retirement income. If the figures fall short of your goals, Financial Engines recommends variations in strategy.
Financial Engines is working with big employers to provide an impartial tool that helps workers choose wisely among different 401(k) packages. But things should really heat up when the company offers its software to individual investors sometime soon.
Financial Engines: on the Web at www.financialengines.com/.
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