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New Investment Tool Kit on SEC Web Site

Everything the novice investor ever wanted to know is reachable from the SEC's new site and others linked to it.

By Mike Hogan, PCWorld   

Considering the complexity of future value calculations for different investments, insecurity about Social Security, and that bog we affectionately refer to as the IRS Tax Code, the real surprise here is that half of us have any clue at all.

Help Is on the Web...
But whatever your state of retirement consciousness, it's never too late to start building that nest egg--or to pick up the pace of construction. And as you might expect, the SEC wouldn't pump up your blood pressure without offering a solution. You'll find many of the answers to financing a comfortable retirement on its new Financial Facts Tool Kit Web site.

It's a wide-ranging subject, and the SEC site is really a portal to a lot of other sites that attack individual aspects of the problem, some run by the many government and investment industry groups that have teamed up with the SEC to provide this comprehensive look at investing.

These sites are filled with basic definitions and information about the panoply of investment options, as well as tons of investment advice, investment resource phone numbers, financial calculators, and worksheets--even a financial calendar--to help you schedule each stage of retirement planning.

The language definitely targets the novice investor, and blends everything from advice on choosing a financial planner to consumer tips for saving money on grocery shopping. Admittedly, a lot of the content is the penny-saved, penny-earned, commonsense variety. But this advice is common because it's worthwhile, and if more people followed it, there wouldn't be a need for the SEC site.

According to the SEC, "An estimated 65 million U.S. households will probably fail to realize one or more of their major financial goals because they have not developed a comprehensive financial plan." Personally, I've adjusted my expectations downward from that high-tech mansion on Lake Washington to just avoiding food stamps.

...And in Print
One takeaway from the SEC Web ring is the 190-page "Your Guide to Understanding Investing" published by the Securities Industries Association, the trade association for securities brokers. The full-color guide, which describes different investment products, procedures, and related tax law changes in plain English, is available for $15 from the SIA's site or by calling 888/654-7238 ext. 742.

Unfortunately, you have to cut and paste the SEC site's worksheets and schedulers into a word processor or spreadsheet. Two easier solutions are Microsoft Money 99 or Intuit's Quicken 99. Either is available for under $90 and contains tools for income and expense tracking and financial planning; these are the same or better than the tools the SEC Web ring offers in text format.

Intuit's Quicken.com and Microsoft's Investor Web sites support these programs with far richer Web content. These sites have more calculators and worksheets that will help you save for the future, and they can save you a lot of data entry by virtue of their integration with Money and Quicken.

Naturally, there's no law against taking what you need from all or any of these sites.