Create an Excel “Retirement Calculator”.The output from your calculator will be the amount that a person needs to save starting in one year’s time in order to meet their retirement goals.The inputs will be:
a.The number of years until retirement (which will be the number of payments that the person makes into their savings account)
b.The number of years that they will live in retirement (which will be the number of withdrawals that they will make from their savings account in retirement)
c.The discount rate.
d.The growth rate of their deposits (remember that g must be less than r)
e.The growth rate of their withdrawals (again, g must be less than r)
f.The amount of money that they want to withdraw from their savings account in their first year of retirement.
Your spreadsheet must be “live” in that the marker will be changing each of your input assumptions to assess the usefulness of your spreadsheet.Your inputs should be clearly labelled, and your output (the amount that you need to start saving next year) should also be clearly labelled.
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