The realm of retirement planning is inundated with numerous platforms and tools, and with that, naturally, there’s skepticism. A frequently asked question is, “Is NewRetirement a scam?”. Let’s dive deep and see in this NewRetirement review.
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What is NewRetirement?
Founded in 2005 by siblings Stephen and Tim Chen, NewRetirement emerged as a solution to a personal family challenge. The brothers Chen noticed their mother, a college-educated entrepreneur who co-owned an advertising business, grappling with her retirement planning. Recognizing that many others would face similar struggles, especially those without the same level of educational and entrepreneurial background as their mother, the Chens were motivated to develop an alternative solution to traditional retirement planning.
Instead of simply relying on cumbersome spreadsheets, Stephen Chen, who had previously co-founded a VC-backed company that raised $40M and eventually got sold, and also bootstrapped a profitable 7-figure consulting firm, envisioned a comprehensive platform. He had experience working with big financial institutions like Charles Schwab, Fidelity, and Dimensional Fund Advisors. Leveraging this wealth of experience, the idea of NewRetirement was conceptualized: an independent, DIY retirement planning tool.
The NewRetirement Difference
The San Francisco Bay Area-based company, NewRetirement, was established with the core objective of enabling individuals to effectively plan their retirement through a do-it-yourself approach. They aimed to make retirement planning comprehensive yet user-friendly, ensuring it catered to those even in the twilight of their careers. Specifically, the platform assists users in understanding how to strategically utilize their savings, navigate Social Security, generate income streams, manage debt, and oversee out-of-pocket medical costs, amongst other facets of retirement planning.
Stephen Chen’s entrepreneurial vision for NewRetirement wasn’t solely based on the platform’s functionality. He identified the company’s unique value propositions in a crowded market. NewRetirement distinguishes itself by being comprehensive and holistic, providing a platform more advanced than a simple calculator. It also operates with a business model that keeps the company’s interests aligned with its users by charging them directly. This ensures that financial advice and tools are not influenced by third-party transactions or asset fees. Furthermore, their approach is to go directly to consumers, allowing them to iterate and refine their platform quickly based on real feedback. Lastly, their technology-first approach means they can deliver high-value solutions at a significantly reduced cost.
NewRetirement’s offerings encompass both free and premium services. They provide resources such as a customizable online retirement planner, calculators for different retirement-related needs, advisory services with Certified Financial Planners (CFPs®), live coaching sessions, and a range of educational content designed to boost financial literacy. The online retirement planner itself has various pricing tiers, with options catering to a wide range of user needs and budgets.
Key Features of NewRetirement
- In-Depth Planning: NewRetirement offers more than just basic calculations. It incorporates a plethora of factors like taxes, income, real estate, medical expenses, and more, ensuring a holistic retirement plan.
- Scenario Play: The platform allows users to visualize various retirement scenarios, from relocating to converting assets, offering comprehensive insights into possible outcomes.
- Comprehensive Analysis: A highlight of NewRetirement is its capability to provide a detailed future outlook, helping users determine if they’re on track to meet their retirement goals.
Costs and Plans
Unlike many traditional financial tools, NewRetirement stands out by augmenting, rather than replacing, the services of your established broker or robo-advisor. Its robust set of tools and resources are curated to provide a nuanced touch to your financial journey, ensuring that retirement planning remains both comprehensive and tailored to individual needs.
Here’s a closer look at their diverse offerings:
- The Free Planner: NewRetirement’s introductory offering lets users craft a retirement roadmap in mere minutes. At its core, it features a dynamic calculator and score system, offering insights into potential retirement income, adjusting for elements like Social Security, pensions, and even part-time employment.
- NewRetirement PlannerPlus: At an annual rate of $120, PlannerPlus takes everything from the Free Planner and elevates it. Users get access to an extended list of planning features, real-time wealth tracking, and advice from a digital assistant. Additionally, the interactive modules, scenario analysis, and exclusive live interactions make it a comprehensive choice for the discerning planner.
- PlannerPlus Academy: For those seeking an all-inclusive experience, the Academy, priced at $270 a year, is the pinnacle of NewRetirement’s offerings. Beyond PlannerPlus’s offerings, it delves deeper into a user’s financial landscape, provides strategic action steps, periodic reviews, and priority access to certified financial expertise.
- Advisory Services: NewRetirement isn’t just about planning; it’s about guiding. With a suite of advisory offerings, users can tap into the expertise of Certified Financial Planners, engage in enlightening coaching sessions, and utilize specialized calculators. Plus, there’s a treasure trove of classes, both live and pre-recorded, aimed at bolstering financial acumen.
While the investment in NewRetirement’s services might give some pause due to the pricing, the platform offers undeniable value. Catering to a wide audience, from those seeking basic guidance to others wanting a deep dive into retirement strategies, NewRetirement proves itself as a versatile and valuable companion for financial journeys.
Verdict: Is New Retirement a Scam?
The idea of NewRetirement emerged from a personal need to assist individuals in making informed retirement decisions without breaking the bank. With endorsements from reputable sources and numerous positive user testimonials, it’s safe to say that NewRetirement is not a scam. As with any service, however, potential users should always do their due diligence, read reviews, and possibly test the platform’s free version before fully diving in. If you are ready to see what NewRetirement has to offer, click here.
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