Financial formulas and tables for retirement planning

Retirement planning can be much simpler than that found in newspapers, magazines and other software.  These files will present you with the formulas needed to handle compound gradients (interest and inflation).

Basic Formula

In 1975 I began to plan for retirement. Inflation was high and getting worse.  My question was, was there a formula that would allow me to calculate a flat percentage to save knowing how long I had to work, rate of return, number of years in retirement, inflation and wage growth? There were basic formulas for mortgages, present and future values, but there was no specific formula for handling compound growth.

Simply subtracting inflation from my rate of return was a linear result and not representative or accurate of two different exponential rates of change.  In 1975 I derived some basic formulas to help me plan for retirement. This formula handles inflation and interest and provides an exact and precise result, no guesswork, approximations or rules of thumb.

Retirement Calculator: How much do I need to save?

This program allows you to estimate what it will take to retire based on today's assumptions. The amount you wish to retire on in today's dollars will be increased over your working years by the replacement rate you choose.

Retirement Calculator: How much can I take out?

You are retired and want to calculate how much you can take out of savings each year and increase this by inflation of some other index for "X" number of years. How do you calculate it?  This program will help you determine a budgetary value.

% of income to save to replace 100% in retirement

You are young and want to begin looking at what you need save in terms of a fixed percent of income over your working life in order to provide a cash flow equivalent to 100% of your current wages. This table will provide you a budgetary value.  However, for a more precise value, use the java formula above.

Dollars to save to provide $10,000 per year

You are interested in saving and want a budgetary dollar amount to save yearly that will provide the equivalent of $10,000 today.  This table will provide a budgetary value.  For a more precise value use one of the formulas above.

I am retired, what percent of my assets can I spend?

Ever wonder how much of your savings (principal) you can spend without running out of money?  Interest, inflation, life span and more make the calculation some what complicated. This table provides a budgetary value of how much of your needs in any given year should come from principal and how much from income on that principal.  As you draw down your assets, the percentage of needs provided for from income will decrease.

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