Author Topic: Thoughts on this Retirement Spreadsheet  (Read 3403 times)

seanquixote

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Thoughts on this Retirement Spreadsheet
« on: April 24, 2013, 03:26:32 AM »

Has anyone here used this spreadsheet?  If so ...what are your thoughts on it?  (I know it's a bit dated, but it looks pretty thorough)

http://www.retireearlyhomepage.com/software.html

How have you or would you tweak?

simonsez

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Re: Thoughts on this Retirement Spreadsheet
« Reply #1 on: April 24, 2013, 02:18:49 PM »
It's pretty decent, just as with any realistic model, the inputs start to add up to a point where in total, they are troublesome to be accurate in the future on all of them.

I'm a federal employee so I have my personal sheet in accordance with the various salary schedules available to me in the area I live (they vary by locality).  Then I have all sorts of scenarios for which sort of path my career will lead.  e.g. will I remain in my current job (no promotion) or will I rise up to the executive level (or whatever highest level of federal promotion) or somewhere in between.  I update the salary and retirement account inputs in real time.  I also have a Social Security tab, an annuity/pension tab, and an unused sick leave tab (for robustness/fun even thought it doesn't matter too much) for various federal reasons that would affect financial planning.  Within the Social Security tab, for fun I built a small table with SS retirement age on one axis and year at death on the other axis.  Then I see what option (age to start taking SS benefits) would generate the maximum lifetime payout.

arebelspy

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Re: Thoughts on this Retirement Spreadsheet
« Reply #2 on: April 25, 2013, 07:18:42 AM »
I feel like there are many better ones out there, whether you prefer a Monte Carlo style simulator, FIRECalc, or whatever.

As far as "Time to FI" it's a pretty simple calculation, and probably not much more is needed than networthify or the like, and you'll move to more advanced when approaching.  I just don't see where this one fits in.

But YMMV, everyone has their favorite tools and if this works for you, that's all that matters!
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

seanquixote

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Re: Thoughts on this Retirement Spreadsheet
« Reply #3 on: April 26, 2013, 06:58:49 AM »


Networthify I have never seen before...good stuff.  I have seen FIRECalc..

When you say "you'll move to more advanced when approaching"...can you expand on that a bit?  One of my problems is that I'm just in an "infancy" stage as far as understanding investing...401k's, IRA's...REIT's etc..It can be a bit overwhelming when first approaching it all and trying to calculate where everything should fit in to the FI plan.

I'm one of the boneheads that has just slapped my $ into the companies 401k program where they at the rate that they match.  I go 6% of my pay they match 100% of the 1st 50% and 50% of the next 50%...if that makes sense.  I'm trying to figure out when I pay all my stupid taxes as Ramsey calls them, where I need to put my new 'found' dough.

I kinda thought this one fit in as helping to see how tax rates et al would affect the equation...

matchewed

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Re: Thoughts on this Retirement Spreadsheet
« Reply #4 on: April 26, 2013, 07:09:25 AM »
What is meant by moving to more advanced when approaching is about the phases of reaching FI. If you're in the accumulation phase (where you save money and invest it or accumulate rentals or start businesses) then the need for complex calculations regarding your stash is not really all that important. The most important part is how much you're saving relative to your income, or your percent savings.

As you get closer to your number you need to start running more complex calculations to determine how, when your income is only from your stash (or the rentals/businesses you have built with it), you manage taxes and the income itself.

I would start with the question. What question are you asking and we've probably got a website covered that will help you in answering that calculation, or we can lay out (and have laid out) how you do that calculation.

arebelspy

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Re: Thoughts on this Retirement Spreadsheet
« Reply #5 on: April 26, 2013, 07:26:57 AM »
Well said matchewed.

In essence, many new to FI get caught up in all these calculations and things that aren't important at all on your journey.  You probably have at least 5 years, maybe up to 15.

What's important right now is: cut stupid expenses, figure out a personal AA, dump all your excess money into that and watch it grow.

(Some people have other things they like, such as track every penny - depends on your personality.)

But for now, KISS.  Save as much as you can, and start to learn.  As long as you continue that, you'll learn about the proper mix for your accounts (regarding both AA and taxable versus non), withdrawal strategies, tax strategies, etc.

You don't have to know how to build a whole car to start driving.  But it wouldn't be a bad idea to start learning as you drive in case you need to fix something along the way.

(Or some less terrible analogy.)
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

seanquixote

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Re: Thoughts on this Retirement Spreadsheet
« Reply #6 on: April 27, 2013, 03:28:14 AM »

Thank you both for these responses...

I think in some way I grasp for calculations in hopes that THEY will get me to FI.  When in fact deep down I know that only I can make it happen.
I guess the other thing is that I find it difficult to figure out my "number" because I'm still trying to track down some parts of the budget.  Most is accounted for...but there is a decent amount that seems to slip past the radar.

Quote
many new to FI get caught up in all these calculations and things that aren't important at all on your journey.
....this is me.

Quote
the need for complex calculations regarding your stash is not really all that important. The most important part is how much you're saving relative to your income, or your percent savings.


I think one reason that newbs like myself reach for the calculator is that it is hard to imagine that it doesn't take some math only Einstein would be able to grapple with in order to reach the Holy Grail of FI.

After reading this: http://www.mrmoneymustache.com/2011/12/14/are-you-obsessed-with-early-retirement/.  I realize that although I may be obsessed, that won't amount to much without taking the proper steps.  No amount of 'running the numbers' will matter without having the 'stache to actually FILL IN those numbers with actual $$.  It has taken me a while to get there...but I'm getting closer every day.  Reading the ERE book and blog and the 'Stache blog is all well and good....DOING it though, makes all the difference. 

One thing I'll interject here is that I may actually be moving more toward the doing and becoming.  I say this because recently I have finally bought a bike...am in the middle of buying a foreclosure (<2 miles from work)...slowly finding and 'staching "extra" money.  But most importantly when I mention what I'm DOING to my co-workers their eyes get big and they look at me as if I've lost my mind.   

What I find extremely interesting is that I really really enjoy it when I get those looks.  HA ha ha.  Plus it give me a chance to testify and explain just what I am trying to do DOING.   


matchewed

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Re: Thoughts on this Retirement Spreadsheet
« Reply #7 on: April 27, 2013, 05:01:25 AM »
One thing you can do that will satisfy that number game is to set that savings rate up as a metric. Calculate where you are now and set a goal. Make the changes in your life and see how that affects your rate. Does it get you closer to your goal and does it keep you happy and are you cool w/ the change? If yes then it is a good change, if no it is not. Once you reach your goal have a beer. Then set a new goal.