Barry and Samantha Harris - Retirement Calculations

Step 1:

Step 2:

Step 3:

What annual income will they need in eacch year during retirement?

How much will they need in their account when they start retirement?

Recalculate using 9%

They will need the net present value of the fifteen years of income.

Annual Income

85,000.00

Calculate the net present value by discounting the fifteen years of income at the rate of return.

How much will they need when they start retirement?

80%

68,000.00

The amount will be different depending on whether they withdraw the money at the beginning or end of the year.

Adjusted for inflation

Initial amount (PV) @ age 46

(68,000.00)

Calculated using Excel

Calculated using Excel

Inflation rate

2.0%

End of year

End of year

Years

20

Rate of Return

?

Rate of Return

?

Future Value @ age 66

Net Present Value

?

Net Present Value

?

Annual inflation adjusted income in retirement

Calculated with the calculator

Calculated with the calculator

Age

Relative Year

Annual Income needed

Relative Year

End of year

Relative Year

End of year

67

1

?

1

?

1

?

68

2

?

2

?

2

?

69

3

?

3

?

3

?

70

4

?

4

?

4

?

71

5

?

5

?

5

?

72

6

?

6

?

6

?

73

7

?

7

?

7

?

74

8

?

8

?

8

?

75

9

?

9

?

9

?

76

10

?

10

?

10

?

77

11

?

11

?

11

?

78

12

?

12

?

12

?

79

13

?

13

?

13

?

80

14

?

14

?

14

?

81

15

?

15

?

15

?

Sum =

?

Sum =

?

How much will the need to save each month to have what they need when they retire?

How much will the need to save each month to have what they need when they retire?

Withdrawal timing

End of Year

Current Savings

Present Value

?

Withdrawal timing

End of Year

Interest Rate

I/Y

?

Current Savings

Present Value

?

Months to Retirement

# of periods N

?

Interest Rate

?

Amount Needed

Future value

?

Months to Retirement

?

Future value

?

Solve for the payment amount

PMT

?

Solve for the payment amount

?