Retirement planning in real dollars

Financial Modeling in Google Sheets

Erin Buchanan

Professor

Save that money!

  • Annual return rate during retirement
  • Amount you want to take out each year
  • Nest egg target amount
    • = Withdrawal / Return

Real dollar fixed

Nest egg calculations

Financial Modeling in Google Sheets

Years and savings

Years and savings

Financial Modeling in Google Sheets

Use the pmt() function

=pmt(rate, number_of_periods, present_value, future_value)

  • Rate: $(1+ Annual Savings Rate)^\frac{1}{12}-1$
  • Number of periods: Years til retirement * 12
  • Present value: 0
  • Future value: - Nest Egg

=pmt((1+B$8)^(1/12)-1,$A9*12,0,-$B$5)

The pmt function for yearly savings

Financial Modeling in Google Sheets

Create a chart

Financial Modeling in Google Sheets

Let's practice!

Financial Modeling in Google Sheets

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