How to use a retirement calculator

How to use a retirement calculator How much income will you need in retirement? Are you on track? A retirement calculator, used correctly, could help you get a rough idea. Two we like are AARP’s and T. Rowe Price’s retirement calculators because they can accommodate couples, not just individuals. With some retirement calculators, you may have to override built-in assumptions. Here are guidelines: • Inflation. Input 3 or 3.5 percent. Pessimistic? Use 4 or 5 percent. • Investment returns. Past performance is not predictive, and your allocations will shift over time. Historical, average annual returns of 9.6 percent for stocks and 5 percent for bonds mean that a mix of 60 percent stocks and 40 percent bonds would return 7.8 percent. But to play it safe, we suggest estimating lower: for a 60/40 mix, 5 or 6 percent. • Retirement income. You won’t commute, fund a 401(k), or owe FICA taxes, but you’re likely to spend on leisure early in retirement. Later, you’ll spend more on health care. So where the retirement calculator asks for retirement income, go with 85 percent of expected final annual income. • Social Security benefits. Get a free estimate from the Social Security Administration. For claiming strategies that may yield more, use Financial Engines’ free Social Security planner (scroll midway down the home page); or pay a service such as Social Security Choices or Maximize My Social Security, $40 each. • Rate of asset withdrawal. Theories vary, but 4 percent annually is a good starting point. Consumer Reports' Retirement Planning Guide offers unbiased, expert advice on making the most of your next life chapter. This article also appeared in the August issue of Consumer Reports magazine. Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2015 Consumers Union of U.S.

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Be cautious of rent-to-own deals

Be cautious of rent-to-own deals Would you buy a $700 computer knowing that it would cost you over $1,700 after a year’s worth of payments? How about a $1,800 clothes washer and dryer combination that would total $3,431 after two years? Those are the types of deals you could end up with if you get your electronics, furniture, appliances, or other items from a rent-to-own store. The rent-to-own industry has about 4.8 million customers, and its 8,900 stores in the U.S., Canada, and Mexico generate $8.5 billion in annual sales, according to its data. The lure of stores such as Aaron’s and Rent-A-Center is that you can acquire a new or used washing machine, television, or bedroom set right away, typically without a credit check and with relatively low weekly or monthly payments. Your agreement is generally on a week-to-week or month-to-month basis, and you can return an item and walk away without a penalty and without damaging your credit score, as you would if you were late on a traditional loan payment. If you make all your rent-to-own payments, you’ll own the item at the end of the term. You might also be able to buy the item during the rental period at a price that’s reduced by a portion of the payments you’ve already made.  Read more about the best place to buy appliances. But rent-to-own can be a pricey proposition. Consider the deal for a $700 Dell Inspiron computer we found at one rent-to-own store. It was being offered at $142.98 a month for 12 months for a total of $1,715.76, excluding sales tax. You could buy two of the laptops outright for that amount and have more than $300 left over. The negatives don’t stop there. You could face other charges, including if you are late with a payment and want to reinstate the agreement so you don’t lose the benefit of what you paid so far. Rent-to-own alternatives Save the rent-to-own charge Paying twice the market price for an item rarely makes sense. If you can afford the weekly or monthly payment of a rent-to-own agreement, consider saving that amount instead. You’ll end up owning the item sooner, you’ll pay far less, and you might even earn a little interest.   Consider loans or used goods If it’s a necessary item, such as a computer for school or work, look for alternatives until you can save the cash. Maybe a friend or family member has a computer you can use, or try a public library, where computers and Internet service often are available for free. Or consider less expensive used products, or models without some pricey bells and whistles that you may never use anyway. Use plastic, but only as a last resort If you have a credit card and absolutely must use it, avoid making only the minimum payment. If you know how much the payments would have been had you obtained the items at a rent-to-own store, add at least that amount to your regular credit-card payment every month, and you’ll likely come out way ahead. ––Mandy Walker (@MandyWalker on Twitter) Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2015 Consumers Union of U.S.

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Best gadgets in bright sunlight

Best gadgets in bright sunlight Ah, summer! Warm days. Ocean breeze. Bright sunlight…uh-oh. Suddenly that beautiful display on your favorite gadget is just one big square of glare. When it comes to bright light, not all displays are created equal. We combed our test data for smartphones, cameras, tablets, laptops, and smartwatches to find the screens that won’t fade out when you let the sunshine in. —Donna Tapellini Smartphones. You take your smartphone with you everywhere, so a screen you can see in the sun is particularly important. We measure how well you can see a tablet outdoors by viewing it at different angles under a light that mimics bright sunlight. The Apple iPhone 6 ($300) has a large 4.7-inch display that looks great in the sun (and anywhere else—we rated it excellent). If you’re committed to the Android world, the Samsung Galaxy S6 ($300) and LG G4 ($550) are also good choices. It may sound counter-intuitive, but the brighter the display, the more you’ll see it in bright light. Remember that to make the display look its best in the sun, turn on auto-brightness. Tablets. We measure tablet performance in bright light the same way we do smartphones. Apple’s iPad Air 2 ($500), a 9.7-inch model, is the best we’ve viewed under bright light, thanks to the anti-reflective coating Apple added to this model. Looking for a smaller tablet, or an Android model? The 8-inch Sony Xperia Z3 Compact Tablet ($500) performed really well in that test, and it’s got one of the brightest displays we’ve ever measured on a tablet. It’s also waterproof, a plus for beach bums. Digital camera. It’s tough to frame the perfect shot when you can’t see the camera’s LCD in the sun. The best way to overcome that problem is by getting a camera with a viewfinder and an LCD that swivels. The Sony Cyber-shot DSC-RX100 iii ($800) has both. The Panasonic Lumix DMC-FC1000 ($800) also has a viewfinder and swiveling LCD. Laptop. Laptops are less easy to manipulate than tablets and smartphones if you’re stuck in the sun. We determine the amount of glare you see on a laptop screen by shining a light bulb on it and measuring the reflection with a light meter. The 13-inch Toshiba Portege Z30-BSMBN22 ($900) did really well in bright light, thanks largely to its matte screen. An alternate choice: Apple’s MacBook Pro 13-inch with Retina Display MF839LL/A ($1,300) which combines a very bright screen with anti-reflective coating. Smartwatch. The Pebble Steel ($130) is the only smartwatch that earned an excellent in our tests for readability in bright sunlight. Most of the others were just good. On the other hand, most of the other watches in our Ratings were excellent in low light, while the Steel was only good. If you don’t mind using your hand to shade your watch in the sunshine, stick with the Apple Watch ($550 to $600) or the LG G Watch R ($300), both of which we recommend. Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2015 Consumers Union of U.S.

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Best deals on American-made cars for July 4th

Best deals on American-made cars for July 4th Independence Day conjures images of patriots, parades, flags, BBQ, and car sales. Indeed, this national holiday weekend is perennially one of the best times to buy a new car. Typically, the customer rebates are large, interest rates small, sales staffs eager, and free balloons plentiful. To size up the buying opportunities, our analysts have studied recent nationwide transactions, then layered in current available incentives to predict the average savings for this holiday shopping weekend. This is labeled as “Market average.” Among the many discounted models, we narrowed our focus to those that meet Consumer Reports’ stringent criteria to be recommended, meaning they scored well in our testing, have average or better reliability in our latest subscriber survey, and performed well in government or insurance-industry safety tests, if evaluated. In the spirit of the patriotic holiday, we have further narrowed our focus to vehicles that are made in America—those models that are built right here on U.S. soil, whether from a domestic or import manufacturer. All featured vehicles are 2015 models. General Motors dominates this list, due to a combination of attractive pricing and having many models that earn a Consumer Reports recommendation. Beyond the highlighted models, there are many vehicles offering notable discounts right now. See all current Best New Car Deals, or use our New Car Selector to create your own list of vehicles by sorting and filtering by the factors that matter most to you. See our special feature “What makes a car ‘American’?” —Jeff Bartlett with Todd Young Consumer Reports Build & Buy Car Buying Service When buying a car, in addition to research and reviews, Consumer Reports offers subscribers access to the Build & Buy Car Buying Service at no additional cost. Through this service, a nationwide network of about 10,000 participating dealers provide upfront pricing information and a certificate to receive guaranteed savings off MSRP (in most states). The pricing information and guaranteed savings includes eligible incentives. Consumer Reports subscribers have saved an average of $2,919 off MSRP with the Build & Buy Car Buying Service. Buick Enclave Even after six years on the market, the large Enclave remains a competitive three-row SUV. We liked its firm, comfortable, and quiet ride and its agile, secure handling. But like its corporate cousins, the Chevrolet Traverse and GMC Acadia, this Michigan-made crossover is beginning to show its age. The 3.6-liter V6 engine and six-speed automatic are smooth and powerful enough, but at times they work hard in this large SUV, and its 15-mpg overall is paltry. A big plus is the ability to fit adults in the roomy third row. Fit and finish is impressive, and for 2015 forward-collision and lane-departure warning systems are available. Make & model MSRP Invoice Market average Buick Enclave Leather AWD $46,375 $45,012 $42,434 Cadillac CTS The CTS is a luxury sedan with agile handling and a firm, absorbent ride that crowns it as one of the sportiest cars in the class. But as satisfying as it is to drive, the CTS can also be frustrating. Much of the blame goes to the overly complex Cue infotainment-system. The cabin is super-luxurious, with impressive material quality. But rear-seat room is snug and the trunk is relatively small. Neither the four-cylinder turbo nor the 3.6-liter V6 is as refined as the best in class. The high-end Vsport version is better, with effortless thrust.   Make & model MSRP Invoice Market average Cadillac CTS Sedan 3.6L AWD Luxury $55,965 $53,766 $53,310 Chevrolet Corvette The sharp-edged Corvette has abundant power from its 455-hp, 6.2-liter V8 and an interior worthy of the price. A seven-speed manual is standard, with an eight-speed automatic optional. Drivers with a thirst for more power can opt for the 650-hp Z06. The car’s all-aluminum construction optimizes weight savings and strength. Acceleration is blisteringly quick, and handling is pinpoint. With the adjustable driving modes the car can be a fairly refined cruiser or track-ready race car. The seats deliver support and comfort. But you can’t ignore the low-slung cabin that’s difficult to access and tire noise. The Corvette is built in Bowling Green, Kentucky, where buyers can take delivery, tour the factory, and visit the National Corvette Museum. Make & model MSRP Invoice Market average Chevrolet Corvette Convertible Z51 3LT $74,445 $69,020 $70,342 Chevrolet Impala One of our top-rated sedans, the Impala is roomy, comfortable, quiet, and enjoyable to drive. It even rides like a luxury sedan, feeling cushy and controlled. Engine choices include a punchy 3.6-liter V6 and an adequate 2.5-liter four-cylinder, both paired with a six-speed automatic. The V6 accelerates and brakes capably, with secure and responsive handling. The full-featured cabin stays very quiet, with a sumptuous backseat and a huge trunk. Controls are intuitive and easy to use, but rear visibility is restricted. Advanced electronic safety features are readily available.   Make & model MSRP Invoice Market average Chevrolet Impala 2LTZ $36,265 $35,025 $33,522 Chevrolet Traverse Although it dates back to 2008, the large, Lansing, Michigan-built Traverse is among the most competitive three-row SUVs. We liked its firm, comfortable, and quiet ride and its relatively agile, secure handling. But like its corporate cousins, the Buick Enclave and GMC Acadia, it’s beginning to show its age. The 3.6-liter V6 and six-speed automatic powertrain is smooth and powerful enough, but it works hard in this large SUV, and its 16-mpg overall is uncompetitive. A big plus is the ability to fit adults in the roomy third row. Fit and finish has improved, and for 2015 forward-collision and lane-departure warning systems are available.   Make & model MSRP Invoice Market average Chevrolet Traverse 1LT AWD $36,670 $35,596 $33,486 Chevrolet Volt An electric car with a backup engine to extend its typical 35-mile electric range, the Michigan-built Volt feels quick, quiet, and responsive, with a taut ride. It only seats four, the rear seat is cramped, and visibility is poor. Once the lithium-ion battery is depleted, the 1.4-liter engine acts as a generator to extend the range by 315 miles. We averaged the equivalent of 99 mpg in electric mode and 32 mpg on premium when it switched over to gasoline. Recharging takes 4 hours using a 240-volt supply and 10 hours with 120 volts. For 2015, the battery storage capacity is increased from 16- to 17.1-kWh, probably leading to more EV-only miles. A 2016 redesign brings increased electric range, an improved control layout, and a center rear seating position. Make & model MSRP Invoice Market average Chevrolet Volt Plug-In Hybrid $35,170 $34,483 $32,063 Ford Fusion Built in Flat Rock, Michigan, the Fusion is a delight to drive, with a supple ride and agile handling rivaling that of a European sports sedan. All trim levels and powertrains feel solid and upscale, with a quiet and well-finished cabin. But the rear seat is somewhat snug, and the MyFord Touch interface is an annoyance. Most Fusions get either a 1.5- or 2.0-liter turbo four-cylinder matched with a six-speed automatic. The 1.5-liter does the job, but the 2.0-liter packs more punch and better suits the car. We recorded 24-and 22-mpg overall, respectively, which is among the lower performers in the category. The Hybrid turned in an excellent 39-mpg overall.   Make & model MSRP Invoice Market average Ford Fusion Titanium AWD $33,115 $31,326 $30,204 GMC Acadia Though it’s starting to feel a little dated, the Acadia is still competitive among three-row SUVs. Like its twins, the Chevrolet Traverse and Buick Enclave, it has a spacious and quiet interior, with a third-row seat that’s roomy enough for adults. Seating for eight is available. Handling is relatively agile and secure, with responsive steering, and the ride is comfortable and steady. Its 3.6-liter V6 is smooth and refined, but it has to work hard and it gets mediocre gas mileage. Upgraded touch-screen infotainment systems bring more capability. Rear visibility isn’t great. Denali versions have more features but no better functionality or performance. Make & model MSRP Invoice Market average GMC Acadia AWD SLT1 $43,745 $42,460 $38,171 Honda Odyssey This versatile and capable hauler built in Lincoln, Alabama, combines clever and generous packaging with responsive handling and a supple ride. Its vigorous 3.5-liter V6 and smooth six-speed automatic returned 21-mpg overall in our tests. The Odyssey can seat eight in relative comfort, with varying configurations for cargo and passenger needs. Easy access, excellent child-seat accommodations, and abundant cabin storage add to the family-friendly quotient. Among our few gripes is the tediously complicated dual touch-screen infotainment system. In addition, fit and finish and some material selection are not what one would expect at this price, and AWD isn’t available. Make & model MSRP Invoice Market average Honda Odyssey EX-L $36,655 $33,912 $33,555 Toyota Avalon When it was redesigned, the Kentucky-built Avalon’s formerly excellent ride was stiffened too much, especially on versions with the 18-inch tires. (Toyota claims it will address that with the 2016 model.) Handling was sharpened and is now sound and secure. The lively 268-hp V6 is paired with a smooth six-speed automatic and delivers punchy performance and a commendable 24-mpg overall. The hybrid’s 2.5-liter four-cylinder is teamed with an electric motor, returning a standout 36-mpg overall. Upscale materials and finish details give the spacious cabin a lush, luxurious ambience. Interior and exterior styling were given careful attention, but the controls were made more complicated. Make & model MSRP Invoice Market average Toyota Avalon Limited $40,805 $38,024 $37,921 Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2015 Consumers Union of U.S.

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