Simplify Savings Jacob Berlin, Travis Reid, Miranda Smith, Kele - PowerPoint PPT Presentation

Simplify Savings Jacob Berlin, Travis Reid, Miranda Smith, Kele McKaig, Jon Buckner, Chevelle Sakyi Gold Group CS 410, Old Dominion University 3 November 2016 1

Team Gold Jacob Berlin Travis Reid Miranda Smith Kele McKaig Jon Buckner Chevelle Sakyi 2 CS 410 Gold 3-November-2016

Outline 3 CS 410 Gold 3-November-2016

American individuals of working age What is the problem? do not prepare adequately for retirement due to lack of long term financial knowledge (e.g. points of contact, investment opportunities and their mechanics). 4 CS 410 Gold 3-November-2016

Retirement Crisis § 56% of Gen X households are at risk of being unable to maintain their standard of living in retirement (Munnell, 2009) § 48% of late Baby Boomers § 41% of early Baby Boomers § “More than 38 million working age households (45 percent) do not own any retirement account assets” (Rhee, 2013) § Only 52 percent of private sector employees have access to workplace retirement benefits (Rhee, 2013) 5 CS 410 Gold 3-November-2016

Retirement Crisis § Defined Contribution vs. Defined Benefit Plans § 401K vs Pension Plans § Managed by individual vs workplace § Dependence on defined contribution plans § Requires financial knowledge § Riskier 6 CS 410 Gold 3-November-2016

Customer base § Working age Americans § Financially inexperienced 7 CS 410 Gold 3-November-2016

Process Flow for problem in customer Domain (Munnell, 2009) 8 CS 410 Gold 3-November-2016

§ Web application to educate people on the points of contact, retirement saving options and how they work Simplify Savings § Teach which options would be best for different users with unbiased information § Knowledge Creates Savings! (Lusardi, 2004) 9 CS 410 Gold 3-November-2016

Scope § General Financial Information § Retirement Specific § Inflation § IRA/ Roth IRA § Interest § 401k/ 403B § Risk Diversification § Pension Plans § Amount to save § Stocks § Social Security § Annuity § Keogh Plan § Bonds § Certificate of Deposit § Mutual Fund 10 CS 410 Gold 3-November-2016

The simplify savings solution (Munnell, 2009) 11 CS 410 Gold 3-November-2016

Major Functional Users consist of Admin and Learners Component Diagram Devices with Access to § Users connect to the the Internet Internet using their prefered device. Dedicated Website for Simplify Savings § Our dedicated website will provide a database to Implemented on Server all information related to saving for retirement Database for all Data Related to Retirement Savings 12 CS 410 Gold 3-November-2016

What will it use? § Web browser § CSS/JavaScript template framework § JavaScript Visualization framework § Manual content collection § Minimal server side processing 13 CS 410 Gold 3-November-2016

Feasibility Analysis 14 CS 410 Gold 3-November-2016

Simplify Savings’ Services Won’t Do Will Do § Create a financial plan § Sort through vast amount of information online to present it simply § Short term budgeting § Explain interactively § Retirement options § Pros and cons of each option § General financial knowledge 15 CS 410 Gold 3-November-2016

Consumer base § 65% of Americans are financially inexperienced, unable to answer three simple financial questions (Lusardi & Mitchell, 2011) § Understanding of Interest Rate § Understanding of Inflation § Understanding of Risk Diversification 16 CS 410 Gold 3-November-2016

Competition § Web platform § FDIC Money Smart game § Mobile device platform § RetirePlan § Retirement plans 401k IRA roth § High cost courses 17 CS 410 Gold 3-November-2016

Competition Matrix Provides a Does Not Assume Provides A Financial Comprehensive Previous Financial Personalized Low Cost Education Tool Retirement Knowledge Financial Plan Education X X X X Simplify Savings X X X FDIC Money Smart X X X RetirePlan X X X Retirement plans 401k IRA roth X X X High Cost Classes 18 CS 410 Gold 3-November-2016

The benefits § Gain financial knowledge § Confidently plan for retirement § Maintain standard of living in retirement 19 CS 410 Gold 3-November-2016

The Wrap Up § What is the problem? § What is the current state? § What is our solution? § Who is it for? § How does our solution change things? 20 CS 410 Gold 3-November-2016

References 1. Rhee, N. (2013). The Retirement Savings Crisis. Washington DC: National Institute on Retirement Security . 2. Lusardi, A., & Mitchell, O. S. (2011). Financial literacy and retirement planning in the united states. Journal of Pension Economics & Finance, 10 (4), 509- 525. doi:http://dx.doi.org.proxy.lib.odu.edu/10.1017/S147474721100045X 3. Lusardi, A. (2004, January 9). Saving and the Effectiveness of Financial Education. SSRN Electronic Journal SSRN Journal . doi:10.2139/ssrn.476022 4. Munnell, A., & Webb A., & Golub-Sass, F. (2009). The National Retirement Risk Index: After the Crash. Center for Retirement Research . 21 CS 410 Gold 3-November-2016