Table 2 shows a benefit-cost analysis based on the initial cost of the program and the estimated annual online charges. These results show that the Reuters Money Network program emerges with the largest benefit-cost ratio with Wall Street Analyst in second place. These ratios can be somewhat misleading since the online charges can vary considerably depending on use. In many cases, the annual online charge can exceed the initial cost for the software. Windows on Wall Street , Wall Street Analyst , and Reuters are all on or near the efficient frontier.
Online charges can exceed the initial cost of the financial software.
Additionally, software packages like the ones examined in this study can be used by the employer as training systems for both employees and retirees in designing their own financial investment plan. Obviously, both the initial cost as well as the recurring online charges must be taken into account before deciding whether to purchase a financial planning system. Several of the relatively low-cost systems identified in this paper, e.g., Reuters , may serve as a starting point. Corporations may wish to consider purchasing one or more of the investment planning packages for use by employees and retirees. This could include the establishment of financial investment clubs where the company helps underwrite the online data transfer charges.