What RetirePlanAI Does Not Do

Why This Page Exists

Most software products emphasize what they can do. We think it is equally important to be clear about what we cannot do. Retirement planning involves real money and real consequences. If you misunderstand the scope of this tool and make decisions based on capabilities it does not have, that is a failure on our part, not yours.

This page is our commitment to transparency. Read it before you make any major financial decisions based on RetirePlanAI's output.

RetirePlanAI Is Not a Financial Advisor

This is the most important thing to understand. RetirePlanAI is an educational planning tool. It helps you model scenarios, explore strategies, and understand the tradeoffs involved in retirement planning. It does not provide individualized financial advice.

What that means in practice:

• It does not know your complete financial picture. It only knows what you tell it. If you have tax complications, legal obligations, business interests, or family situations that you have not entered, the projections will not account for them.
• It does not have a fiduciary duty to you. A fiduciary financial advisor is legally obligated to act in your best interest. Software cannot have that obligation. RetirePlanAI runs calculations based on your inputs and assumptions. It does not evaluate whether your inputs are correct or whether the strategies you are exploring are appropriate for your situation.
• It does not manage your money. RetirePlanAI does not connect to your accounts, execute trades, rebalance your portfolio, or take any action on your behalf. It is a modeling tool, not an investment management platform.
• It does not replace professional advice. For complex situations involving significant assets, multiple income sources, business ownership, or major life transitions, a qualified financial professional can provide guidance that software cannot.

If you are looking for a fiduciary financial advisor, consider seeking a fee-only advisor (one who charges a flat fee or hourly rate rather than earning commissions on products they sell). The National Association of Personal Financial Advisors (NAPFA) and the Garrett Planning Network are two directories of fee-only advisors.

No Bank or Brokerage Integrations

RetirePlanAI does not connect to your bank accounts, brokerage accounts, or any third-party financial data aggregator like Plaid, Yodlee, or MX. All data in RetirePlanAI is entered by you, manually.

This is a deliberate design choice, not a missing feature. Here is why:

• Your data stays under your control. When you connect accounts through an aggregator, your credentials and financial data pass through third-party systems. With RetirePlanAI, your financial data exists only in our system and is based solely on what you choose to enter.
• No dependency on third-party uptime. Account aggregation services frequently break when banks change their systems. We have seen users of other tools lose access to their data or see stale balances for weeks. Manual entry means your data is always current as of the last time you updated it.
• You decide what to include. You might not want every account in your retirement plan. Maybe you have a savings account earmarked for a vacation, not for retirement. Manual entry lets you include only what is relevant to your retirement planning.

The tradeoff is real: you need to keep your account balances current by updating them periodically. We recommend reviewing and updating your balances at least quarterly, and whenever you make a significant contribution or withdrawal. A few minutes of data entry every few months is the cost of maintaining control over your financial data.

Projections Are Estimates, Not Guarantees

Every number RetirePlanAI shows you is a projection based on your inputs and assumptions. Projections are not predictions. They are mathematical models of what could happen if your assumptions hold roughly true.

Understanding what a Monte Carlo success rate actually means is important:

• A 90% success rate does not mean you will be fine. It means that in 90% of the thousands of simulated market scenarios, your portfolio lasted through your life expectancy. In the other 10%, it did not. Whether you end up in the 90% or the 10% depends on actual future market conditions that no one can predict.
• A 70% success rate does not mean you will run out of money. It means your plan is more sensitive to market conditions and has less margin for error. It might work out perfectly. It might not.
• All simulations use historical patterns. Monte Carlo simulations model volatility based on how markets have behaved in the past. Future markets could behave differently. A black swan event, a prolonged depression, or an unprecedented economic boom would all fall outside the model's expectations.

The right way to use projections is not as predictions but as a framework for decision-making. If changing your retirement age from 62 to 65 moves your success rate from 72% to 91%, that tells you something meaningful about the relative strength of those two plans, even if the exact percentages are not guaranteed.

Tax Modeling Limitations

RetirePlanAI includes tax modeling for specific planning scenarios, but it is not a comprehensive tax calculator. Here is what it does and does not cover.

What It Models

• Federal income tax: Real IRS brackets for all four filing statuses, applied every year of your projection — not only in Roth conversion planning. Includes the standard deduction with the age-65 addition and the current senior bonus deduction.
• State income tax: Estimates for all 50 states and Washington DC, using each state's own rates, brackets, and standard deduction, plus how it treats Social Security. Major retirement-income exclusions are modeled in supported states.
• Social Security taxation: The federal provisional-income test that determines whether 0%, 50%, or 85% of your benefit is taxable.
• FICA (payroll tax): Social Security and Medicare tax on wages while you are still working, including the Additional Medicare surtax, with a separate wage base for each spouse.
• Pre-tax retirement contributions: Contributions to a 401(k), 403(b), or 457 reduce your taxable income, capped at the annual elective deferral limit including age-based catch-up amounts. State treatment is handled individually — Pennsylvania taxes these deferrals when contributed, and New Jersey excludes 401(k) but not 403(b) or 457.
• Required minimum distributions: Calculated from the IRS Uniform Lifetime Table on your prior year-end balance, with the start age set from each person's own birth year.
• Roth conversions: Strategies that fill your bracket to a target, optionally trimmed to avoid crossing an IRMAA cliff.
• IRMAA thresholds: Used to size Roth conversions so they do not cross a Medicare premium cliff. Note the surcharge itself is not charged as a cost in your projection.
• Tax treatment by account type: Traditional IRA and 401(k) withdrawals taxed as income, Roth withdrawals tax-free, HSA withdrawals for medical expenses tax-free.

What It Does Not Model

• Some state retirement-income exclusions: State income tax itself is modeled for all 50 states and DC. However, a number of states offer exclusions for pension or retirement-account income that we have not yet verified against that state's own revenue department. Those states are currently modeled as taxing retirement income in full, which overstates their tax. We would rather overstate than invent a deduction that may not exist.
• Local and city income taxes: Taxes levied by a city or municipality — New York City, Yonkers, and many Ohio and Pennsylvania municipalities — are not modeled, nor are state itemized deductions or state-level credits.
• Net investment income tax and self-employment tax: The 3.8% NIIT on high earners and self-employment tax are not modeled.
• Capital gains and cost basis: The tool does not track the cost basis, tax lot, or holding period of individual investments. Withdrawals from a taxable brokerage account are treated as a return of your original investment, so they generate no capital gain. If you are selling appreciated holdings, your real tax will be higher than shown. Dividend income is likewise not taxed.
• Estate taxes: Federal estate taxes apply to estates above a high threshold, and many states have lower thresholds. RetirePlanAI does not model estate tax implications.
• Alternative Minimum Tax (AMT): For high-income individuals, AMT can affect the tax benefit of certain deductions and strategies. This is not modeled.
• Tax loss harvesting: The practice of selling investments at a loss to offset gains is not modeled.
• Qualified Charitable Distributions (QCDs): Donating directly from an IRA to a charity after age 70.5 has specific tax advantages that are not modeled.

Tax law changes frequently. The tool uses current federal brackets and thresholds, but Congress can and does change tax rates, bracket thresholds, standard deductions, and rules around retirement account distributions. Any projection that extends 20 or 30 years into the future is almost certainly using tax rules that will have changed by then.

Financial Topics Not Covered

RetirePlanAI focuses on retirement income planning: whether your money will last, how to draw it down, and how to optimize the timing of key decisions. Several adjacent financial planning topics fall outside its scope.

Estate Planning

Wills, trusts, beneficiary designations, powers of attorney, and healthcare directives are all critical parts of a complete financial plan. RetirePlanAI does not model any of these. It does not account for how your assets will be distributed after death, whether your beneficiary designations are current, or whether a trust structure might benefit your situation. For estate planning, consult an estate planning attorney.

Insurance Planning

Beyond modeling IRMAA surcharges on Medicare premiums, RetirePlanAI does not evaluate your insurance needs. It does not analyze whether you need life insurance, how much long-term care insurance might cost, whether disability insurance is appropriate, or what supplemental Medicare coverage to choose. Insurance needs vary enormously based on health, family situation, and assets. An insurance professional or comprehensive financial planner can help with these decisions.

Investment Selection

RetirePlanAI lets you enter your accounts and their expected returns, but it does not recommend specific investments. It does not analyze individual stocks, suggest mutual funds or ETFs, evaluate expense ratios, or recommend asset allocations. The tool models the outcome of your chosen allocation; it does not tell you what that allocation should be.

Business and Complex Income Situations

Business succession planning, self-employment tax optimization, stock option exercise strategies (beyond RSU vesting), partnership income, and rental property tax optimization all require specialized expertise. RetirePlanAI can model the income from these sources at a high level, but it does not account for the tax and legal complexities involved.

International Considerations

If you plan to retire outside the United States, receive income from foreign sources, or hold significant assets in other countries, RetirePlanAI is not equipped to handle the tax, currency, and legal implications. The tool is designed for U.S.-based retirement planning with U.S. dollar-denominated accounts and U.S. tax assumptions.

Divorce and Separation

The financial implications of divorce, including the division of retirement accounts (QDROs), changes in Social Security benefits, alimony, and property settlements, require specialized guidance and are not modeled in the tool.

Disability Scenarios

If you become unable to work before your planned retirement age, the financial impact can be severe. RetirePlanAI does not model disability scenarios, though you could approximate one by creating a scenario with an earlier retirement age and reduced income.

Long-Term Care

The cost of assisted living, nursing home care, or in-home care can easily reach $50,000 to $100,000 or more per year. RetirePlanAI does not specifically model long-term care scenarios, although you can approximate these costs by adding them as one-time expenses at estimated ages. For serious long-term care planning, consult a financial planner who specializes in this area.

Behavioral and Life Factors Not Modeled

Financial models assume rational, consistent behavior. Real life is messier. Several important factors are inherently beyond what any planning tool can model:

• Panic selling during market downturns. Your plan might show that staying invested through a 30% market drop is fine. But when it actually happens, many people sell at the bottom. The tool assumes you will stick to your strategy.
• Lifestyle inflation. Your spending tends to rise as your income rises. The tool models the budget you enter today, but if you gradually increase your lifestyle before retirement, your actual spending at retirement may be higher than planned.
• Family financial emergencies. An adult child who needs financial help, an aging parent who requires care, or an unexpected family obligation can significantly affect your plan. These events are unpredictable and are not modeled.
• Changes in health. A serious health condition can simultaneously increase your expenses and decrease your ability to earn income. Conversely, excellent health might lead to a longer and more active (and more expensive) retirement than expected.
• Cognitive decline. Managing finances becomes harder with age. Your plan might be solid, but if you are unable to manage it effectively in your 80s, the outcome may differ from what the model projects. This is one reason to involve a trusted family member or advisor in your financial oversight as you age.

What You Should Use RetirePlanAI For

Given all these limitations, you might wonder what the tool is actually good for. The answer: quite a lot, within its scope.

• Understanding whether you are on track. Even with imperfect assumptions, comparing your savings rate, portfolio size, and spending level against Monte Carlo simulations gives you a meaningful sense of whether you are in good shape, need to make adjustments, or are far off course.
• Comparing strategies. Should you retire at 62 or 65? Claim Social Security early or delay? Do Roth conversions now or later? The tool excels at comparing the relative merits of different approaches, even if the absolute numbers are approximate.
• Identifying what matters most. The Sensitivity Analysis tool shows you which variables have the biggest impact on your plan. This helps you focus your attention and decisions on the things that actually move the needle.
• Exploring "what if" questions. What if inflation runs at 4% instead of 3%? What if I downsize my home? What if my spouse continues to work part-time? Being able to test these questions with real numbers is enormously valuable for decision-making.
• Preparing for conversations with your financial advisor. Many people get more value from their financial advisor when they come to meetings with a basic understanding of their numbers and specific questions to discuss. RetirePlanAI can help you frame those conversations productively.
• Ongoing monitoring. Retirement planning is not a one-time event. Your plan should evolve as your life changes. RetirePlanAI gives you a framework for regularly checking in on your progress and adjusting your strategy.

When to Consult a Professional

We encourage you to seek professional advice in any of the following situations:

• Complex tax situations. Multiple income sources, business income, significant capital gains, income from multiple states, or international income all benefit from professional tax planning.
• Estate planning. If you have significant assets, blended family considerations, charitable giving goals, or want to minimize estate taxes, an estate planning attorney is essential.
• Insurance needs assessment. Determining appropriate life insurance coverage, evaluating long-term care insurance, and choosing Medicare supplemental plans are areas where professional guidance can prevent costly mistakes.
• Major life transitions. Divorce, widowhood, inheritance, early retirement (voluntary or involuntary), sale of a business, or relocation all have financial implications that are best navigated with professional help.
• If you feel uncertain. There is no shame in wanting a professional to review your plan. If making financial decisions on your own causes you significant stress or if the stakes feel too high to go it alone, a good financial advisor is worth the cost.

A good financial advisor does not just run projections. They understand your goals, your fears, your family dynamics, and your tolerance for risk. They can provide accountability, behavioral coaching during market downturns, and specialized expertise in areas that software cannot cover. RetirePlanAI and a financial advisor are not competitors. They are complementary tools for building a secure retirement.

Our Commitment

We will continue to be transparent about what RetirePlanAI can and cannot do. As we add new features, we will update this page. If you ever feel that the tool is presenting its capabilities in a misleading way, we want to hear about it. Trust is earned by honesty, not by marketing claims.