Retirement | Planner
Key Data:
Number of Years Till Retirement
Estimated Average Growth Rate of Investments Until Retirement
Estimated Average Annual Rate of Inflation Until Retirement
Number of Years In Retirement
Estimate Growth Rate of Investments During Retirement
Estimated Annual Rate of Inflation During Retirement
Estimated Tax Rate In Retirement
Step 1: Estimate Your Annual Needs at Retirement
A. Present level of your living expenditures on an after-tax basis in today's dollars
 
B. Percentage of income you want to replace
(e.g., 80% in decimal form)
C. Base retirement expenditure level in today's dollars at replacement level
 
D. Anticipated change in living expenditures after retirement
 
E. Annual living expenditures at retirement on an after-tax basis
(in today's dollars)
F. Estimated tax rate in retirement
(from above)
G. Before-tax income necessary for retirement in today's dollars
 
H. Before-tax income necessary at retirement in future dollars after inflation
 
Step 2: Estimate Income Annually from Social Security and Pensions at Retiremen
A. Projected annual Social Security benefits
(in today's dollars)
B. Projected annual defined-benefit pension
(in today's dollars)
C. Projected total pension benefits in today's dollars for all vehicles
 
D. Estimated average growth factor in percent
 
E. Estimated number of years until you retire
(from above)
F. Anticipated Social Security and Pension income in future dollars
 
Step 3: Estimate your total Retirement Needs After Inflation at Retirement
A. Target Annual retirement income in future dollars
(from Step 1.H)
B. Combined Social Security and Pensions in future dollars
(from Step 2. F)
C. Target Annual Income Needed from Investments, in future dollars
(A+B)
D. Monthly Income Needed from Investments, in future dollars
(C/12)
E. Number of Years in retirement
(from above)
F. Expected interest rate in retirement
(from above)
G. Expected inflation rate in retirement
(from above)
H. Inflation adjusted return
(1+nominal return)/(1+inflation)-1
I. Total inflation adjusted Annuity required to give annual income
(beginning of period, PV)
J. Total inflation adjusted Annuity required to give monthly income
(beginning of period, PV)
Step 4: Determine how much have you Accumulated so far in Today's and Future Dollars
A. Current value of taxable investment and savings account assets
 
B. Current value of Retirement account assets in today's dollars
(401K, IRAs, SEPs, etc.)
C. Total Value of Taxable and Retirement Accounts
 
D. Number of years till retirement
(from above)
E. Estimated growth rate in investments until retirement
(from above)
F. Estimate annual rate of inflation until retirement
(from above)
G. Inflation adjusted return
(1+nominal return)/(1+inflation)-1
H. Projected value of current savings at retirement in future dollars
 
Step 5: How much will you draw from home equity?
A. Current value of your home in today's dollars
 
B. Estimated growth in your home's market value
(may be different from inflation)
C. Number of years to retirement
(from above)
D. Estimated value of your home at retirement in future dollars
 
E. Mortgage remaining at retirement
(should be negative)
F. Price of new home at retirement
(should be negative)
G. Home's estimated contribution to total investment needed in future dollars
 
Step 6: How much more do you need to save?
A. Preliminary Total Investment needed in future dollars for monthly income
(from Step 3. J)
B. Preliminary Total Investment needed in future dollars for annual income
(from Step 3. J)
C. Current savings in future dollars
(from Step 4. H)
D. Contribution from home equity in future dollars
(from Step 5. G)
E. Total Investment Shortfall in future dollars for monthly income
 
F. Total Investment Shortfall in future dollars for annual income
 
G. Number of years until retirement
(from above)
H. Estimated growth rate in investments until retirement
(from above)
I. Total Investment Amount needed monthly to reach your monthly goal
(in today's dollars)
J. Total Investment Amount needed annually to reach your annual goal
(in today's dollars)