Speadsheets for Retiring on Equities/Fixed Interest

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Shady, 21st Feb, 2020.

Join Australia's most dynamic and respected property investment community
  1. Shady

    Shady Well-Known Member

    20th Aug, 2015
    I've been dabbling with a few spreadsheets just for ***** and giggles and thought I'd share them here for anyone that's interested or has any comments.

    First one shows what happens if living off dividends and assumes zero capital growth.
    Just enter the size of the portfolio and then allocate % to each investment.
    You can allocate certain percentages of portfolio to different types of investments to show over all dividend income. Also shows what happens to annual income if dividends are cut by 10%, 20%, 30%...and so on. The cuts to dividends apply only to equities, not term deposits, cash or bonds.
    It will show the difference between annual dividend income and the annual income required. If this shortfall is made up from cash savings, term deposits and bonds it will show roughly how long the cash reserves will last.
    Finally it shows the overall grossed up yield on the portfolio.
    I've made lot of assumptions but thought it was interesting none the less.

    Second one shows a total return portfolio with dividends and capital growth. Using an overall dividend figure from the previous spreadsheet and adding a capital growth component.
    Enter in the annual fixed costs and then enter in lump sum withdrawals for cars/holidays/etc.
    The annual fixed costs can be indexed for CPI
    Shows how many years the portfolio will last during retirement. I've assumed a diminishing lump sum requirements as time goes on.

    Attached Files:

    Last edited by a moderator: 21st Feb, 2020
  2. Intrigued_again

    Intrigued_again Well-Known Member

    4th Mar, 2016
    Must be that time of year thing, been mucking around with this, actually tried to replicate a spreadsheet I saw in my late twenties the guys showing me asking me where I was at capital wise.

    Wanted to show my Daughter it’s not that hard.
    For someone starting out, being able to see what’s required to get to freedom (well so called)

    Starting Wage: from Starting Age for the next 40years (only used 40 years)
    Wages Growth: the rate for your working life
    DCA Starting Capital: between 5 and 16% of wage
    Starting age: age you want to start
    Div. Growth rate: Company you select
    Capital Growth rate: Company you select
    Income required: Income required during the retirement period
    Tax rate: if applicable
    Income Increase: inflation rate of income required
    Then the Retirement age for the want of better word in one of them.
    Then the Values @ age

    Then the tables give you different outcomes for differing Capital and Dividend Growth rates.
    Hope it makes some sort of sense

    Attached Files:

    shakes and number 5 like this.