fisv 2000
gknuoya
RetirementPlanPart2-wExampleData.xlsxInstructions
| Using the information you've previously researched and/or know about your career, develop a realistic retirement plan. Consider inflation and other factors that will impact how much money you want to have upon retirement. Don't forget that the amount you will have amassed will not be spent all in one year, but will instead be the amount from which you will draw upon for each month/year of retirement. The money will stay in an investment/brokerage/cash account during your retirement years and will continue to grow at some rate you need to assume. You need to enter information in the dark colored cells; everything else is formula-driven. You also need to explain to how you came up with the data you input. |
| Starting from today (or really the nearest 5-year time period in the 'Contributions' section: How much money will you contribute each period (month, week, etc.) during each stage of your career? For example, will you increase your contributions during certain time periods or decrease your contributions during other periods? As a result, I've set up several Future Value calculations: one for the initial contribution period you select, and several additional ones for the incremental increases in contributions. |
| Based on your contributions, how much will you have accumulated at retirement? After you consider Question 3: will you have accumulated enough money or do you need to adjust your plan. If you need to adjust, go ahead and do it so that you provide me with your final calculations. |
| How much will you need/want to withdraw each year of retirement? Show me how you came up with this amount - for example, you want $xxx for travel and entertainment, you want $xx for recurring expenses, etc. Remember that inflation will play a part here: $20,000 per year for travel now will actually cost more than $20,000 any number of years from now because of inflation. In order to be consistent, let's assume .05% compounding inflation (we could argue whether that's too high or too low, but let's use this percent for this project). I've built this to account for .05% being the annual inflation rate. |
| Do you want to leave money in your retirement account to pass onto your family or to donate to a particular cause you believe in, etc.? If so, you need to make sure you leave some money in your account. |
Template
| CONTRIBUTION SCHEDULE (Assumes a 45-Year Horizon) | CONTRIBUTION RATIONALE | ||||||||
| Contribution Years | Monthly Contrib. (Incl. Match) | Future Value | Provide an explanation of how you came up with the contributions. You can provide me a separate schedule or table within this file if you want. Did you need to adjust your contributions in order to achieve your goal? Tell me here if you did and what you did. | ||||||
| Years 1-5 (45 years until retirement) | $ - 0 | ||||||||
| Years 6-10 (40 years until retirement) | $ - 0 | ||||||||
| Years 11-15 (35 years until retirement) | $ 1,000 | $ 3,339,463 | |||||||
| Years 16-20 (30 years until retirement) | $ 1,200 | $ 406,607 | |||||||
| Years 21-25 (25 years until retirement) | $ 1,500 | $ 365,720 | |||||||
| Years 26-30 (20 years until retirement) | $ 1,500 | $ - 0 | |||||||
| Years 31-35 (15 years until retirement) | $ 1,500 | $ - 0 | |||||||
| Years 36-40 (10 years until retirement) | $ 1,000 | $ (99,540) | |||||||
| Years 41-45 (5 years until retirement) | $ 800 | $ (15,284) | |||||||
| Total Future Value of Ongoing Contributions | $ 3,996,965 | ||||||||
| Current Retirement Savings Balance | $ 60,000 | $ 1,646,245 | |||||||
| Number of Years From Now Until Retirement | 35 | ||||||||
| Total Saved Upon Retirement | $ 5,643,210 | ||||||||
| Rate of Return During Contribution Period | 9.5% | ||||||||
| WITHDRAWAL SCHEDULE | RECURRING CASH NEEDS SCHEDULE | ||||||||
| Retirement Years | Monthly Cash Needs | Monthly Withdrawals Possible | Description | Annual Amount for Years 1-10 (Today's Cost) | Annual Amount Years 1-10 Inflated | Annual Amount for Years 11-25 (Today's Cost) | Annual Amount Years 11-25 Inflated | ||
| Years 1-10 | $ 21,575 | Travel and Entertainment | $ 25,000 | $ 42,097 | $ 25,000 | $ 48,855 | |||
| Years 11-25 | $ 20,560 | Recurring Living Expenses | $ 90,000 | $ 151,549 | $ 60,000 | $ 117,253 | |||
| Average Cash Needs | $ 21,067 | $ 32,822 | Income Taxes | $ 28,750 | $ 48,412 | $ 21,250 | $ 41,527 | ||
| Other | $ 10,000 | $ 16,839 | $ 20,000 | $ 39,084 | |||||
| Other | $ - 0 | $ - 0 | |||||||
| Other | $ - 0 | $ - 0 | |||||||
| Inflation Factor | 1.5% | $ 153,750 | $ 258,897 | $ 126,250 | $ 246,719 | ||||
| Rate of Return During Withdrawal Period (APR) | 5.0% | ||||||||
| Desired Balance for Inheritance, etc. | $ 100,000 | Provide an explanation of what expenses you anticipate having here. Will they change over time? If so, make adjustments to this template as necessary. | |||||||
