Frequently Asked Questions

• What is ESPlanner and how does it differ from other software?
• What is the conventional method of financial planning?
• How does ESPlanner approach this problem?
• Why do I need such a highly detailed program?
• Is this too complicated for me to use?
• How can I learn more about the software before I buy it?
• How is the software priced?
• Do individuals find the software easy to use?
• What else should I know?
• What is your return policy?
• Who created ESPlannner software?
• Does the company sell any financial products?
• If I have any additional questions, how can I contact the company?

Q. What is ESPlanner and how does it differ from other software?

A. ESPlanner is the only economics-based personal financial planning software that helps you build a lifetime plan.  In general, the “free” software available on commercial web sites is based on the conventional method of financial planning.

Q. What is the conventional method of financial planning?

A. The conventional method of financial planning was invented decades ago by the insurance/investment industry.  It is an unsophisticated and outdated planning methodology that asks you to set a post retirement spending target that equals the amount of money you will need to live on in retirement.  This approach then guides you to use set your target using a “rule of thumb,” namely to target to spend between 75 percent and 85 percent of your pre-retirement income each year in retirement.  The planning tools provided by financial services companies are based on this rule-of-thumb planning method and are dangerous to your financial health. They can readily tell you to save and insure far more or far less than is appropriate. See this case study for one illustration of the difference.

Q. How does ESPlanner approach this problem?

A. ESPlanner takes your personal data and calculates the correct spending targets for you based on your household demographics and economic resources—not on a "rule of thumb.”

ESPlanner is the most sophisticated, highly detailed software being used by independent financial planners and by consumers who want to do their own planning.  It is very easy to use.

ESPlanner introduces the concept of life-cycle planning and the need to manage economic resources over time. The program incorporates all household financial resources as well as “off-the-top” fixed expenditure commitments.

Household resources include wages, self-employment income, regular financial assets, retirement account balances, reserve funds, housing equity, investment income, pensions, and Social Security benefits. “Off-the-top” fixed expenses include taxes, housing expenses, alimony, college tuition, etc.

The program recommends annual discretionary spending, saving, and life insurance amounts needed to maintain a stable living standard over time without putting the household into debt.

The program also allows you to use the conventional planning method if you want to set your own "target" for post-retirement spending.

Q. Why do I need such a highly detailed program?

A. Your lifetime financial plan is very important and you should use the best tool available to build your plan.

Household finances are complex with inflows and outflows that occur over many years and that both determine, and are determined by, taxes and Social Security benefits. Proper economics-based life-cycle planning requires the appropriate mathematical framework, the right numerical solution methods, and very careful attention to tax and Social Security provisions.

Virtually all personal financial questions, from “Can I retire early?” to “Should I use a Roth?” to “Should I downsize and move to Florida?” boil down to the impact on the household’s living standard. Because it calculates a household’s living standard, ESPlanner can answer living standard questions that were previously impossible to address.

ESPlanner, in fact, is the only financial planning software that calculates a household’s highest sustainable "living standard"-—that is, their highest available discretionary spending over their lifetime.

Q. Is this too complicated for me to use?

A. Although its engine is complex, ESPlanner’s interface, suggestions, and reports are easy to follow. Moreover, users can see at a glance that the program is recommending the path of annual discretionary spending that will ensure the most stable living standard through time without putting them into debt or leaving money on the table.

Thousands of individuals have bought the software and are using it with no difficulty.

Take the time to look at ESPlanner at a Glance and the sample report.

Q. How can I learn more about the software before I buy it?

A. We have a free, online, simplified version, ESPlannerBASIC.  This version will illustrate the basic principles of economics-based planning.

Q. How is the software priced?

A. We have software for individuals and for financial advisers. 
Individuals can buy an annual license for ESPlanner ($149) or ESPlannerPLUS ($199). ESPlannerPLUS includes a Monte Carlo module which shows you the level and spread of your living standard each year based on how you intend to invest.  Both programs are sold as downloads, and each subsequent year, for $50, you can buy an update which will include new tax tables and program enhancements. Once you purchase an annual license, you will be notified of any improvements made to the software, during that year, so you can download the update automatically and at no additional cost.

Financial Advisers can buy ESPlannerPRO for use in their practice. In addition to client management tools, advisers can list their practice on our web site to attract individuals who want to work with an adviser using this planning approach.  Here you can view a list of some of the Financial Advisers using ESPlannerPRO.

Q. Do individuals find the software easy to use?

A. Please read the feedback from individuals who are using the software.

Q. What else should I know?

A. ESPlanner uses a special dual-dynamic programming method (U.S. Patent No. 6,611,807) and other advanced mathematical techniques to form its recommendations in seconds. ESPlanner makes exceptionally detailed year and survivor-state specific federal and state tax and Social Security benefit calculations.

The software is the first and only financial planning program to incorporate economic principles. It implements the Life-Cycle Theory of consumption smoothing developed by economists, including Nobel Laureate Franco Modigliani.

Q.What is your return policy?

A. If you are not satisfied with the software and want to return it within 10 days, we will refund your money 100%

Q. Who created ESPlannner software?

A. Professor Laurence Kotlikoff, an economist at Boston University, developed the software with other economists.  You can read about his background at www.kotlikoff.net

Q. Does the company sell any financial products?

A. No.  We do not sell any financial products, only our planning software.

Q. If I have any additional questions, how can I contact the company?

A. Please email us.