| How to Make Retirement Plans in Less Than 15 Minutes |
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First, here are the Quickie directions for Single RWR Directions for Dual RWR, RP, and the Free Retirement Calculator Follow Go to the Summing & Input sheet (where the program first opens up to). Input the last name (yours or the client's) into cell A2. If there's only one person, then input their first name into cell A3. If there is another person, then input the oldest's person's first name into A3, and the youngest person's first name into A4. Input the current year into cell A5. Input the oldest person's year of birth into A7. If there is a younger person, input their year of birth into cell A8. Input how much after-tax money is needed to live on (for one or both people combined) an annual basis into A9. Cells A11 - A13 come with input in them already. If there's nothing in them, then input 5% into A11, and 100 into A12 and A13. Input the age retirement is to start for the oldest person into cell E3. Input the age retirement is to start for the youngest person into cell E4. Inflation: Input "3" (which will turn into "3%" after you press enter) into all three cells, E5, E6, and E7. Taxes: Input "20" (which will turn into "20%" after you press enter) into E8. Input the age you want (them) to start collecting Social Security into cells E9 & E10. Enter 65 (for both people, if there are two people) if you are confused. If they are older than 65, then you'll need to input their current age. Input $1,500 into cells E11, and E12 if there are two people. This is an average guess of how much Social Security one receives. Social Security Inflation: Enter "2" (which will turn into "2%" after you press enter) into E13 for annual Social Security Cost of Living (inflation) increases. Input 50% into cell E22. This is how much Social Security will be taxable. Click the sheet tab to the right, called Oldest Asset #1, or press Control and Page Down at the same time, once to go there. Input the name of the biggest asset into cell A5 - call it "Assets" for now. It's normal for red error messages to appear until there is sufficient input. Input the current value of all investment / retirement investments into cell A6 (don't input home equity, vehicles, or personal property). Input the current age of the oldest person, shown in A3, into A7. Input the age that the oldest person will retire, shown in L3, at into A8. Asset's growth rate: Input 8% into cell A9. If this investment is mostly in qualified retirement plans (401k, IRA, etc.), then input 100% into A10. If it's not, input 50%. Enter 6 into cell A16. Ensure cells A12 - 15 have appropriate data input into them if you want to account for contributions to the investment. Return to the Summing & Input sheet (Control Page Up). Ensure that rows 14 through 17 of the Summing & Input sheet do not display any red error messages. If they do, then the text tells how to fix them. That's it. Now just look at the sheets to the left of the Summing and Input sheet to see the results. Using the Monte Carlo feature: This could take over half an hour once you run the macro! Go to the far right Monte Carlo sheet. Press control M (hold the control key down and press the M key. If Control M doesn't do anything, then go to Tools, Macro, Run the Monte Carlo macro. In Excel 2007, macros are on the far right under the View tab. A macro runs. When it stops and asks you if it's okay to delete the temporary sheet, click OK. It then ends up on the cell with the resulting probability number. If you're seeing this: #### then either increase your Zoom magnification number (View, Zoom), or make the column or row width wider. This is all that's needed for the most basic input. Now please read the manual to account for details. Quickie Directions for Dual RWR Go to the Master Input sheet (where the program first opens up to). The Current / Old retirement plan input is in column A. The Proposed / New retirement plan input is in column D. Input the last name (yours or the client's) into cell A4. If there's only one person, then input their first name into A5. If there is another person, then input the oldest's person's first name into A5, and the youngest person's first name into A6. Input the current year into cell A7. Input the oldest person's year of birth into A9. If there is a younger person, input their year of birth into cell A10. Input how much after-tax money is needed to live on an annual basis, after retirement, into A11. Cells A13 - A15 come with input in them already. If there's nothing in them, then input 5% into A13, and 100 in A14 and A15. Input the age retirement is to start for the oldest person into cell A16. Input the age retirement is to start for the youngest person into A17. Inflation: Input "3" (which will turn into "3%" after you press enter) into all three cells, A18, A19, and A20. Taxes: Input "20" (which will turn into "20%" after you press enter) into cell A21. Input the age you want (them) to start collecting Social Security into cells A22 & A23. Enter 65 (for both people if there are two people) if you are confused. If they are older than 65, then you'll need to input their current age. Input $1,500 into A24 and A25. This is an average guess of how much Social Security one receives. Social Security Inflation: Enter "2" (which will turn into "2%" after you press enter) into A26 for annual Social Security Cost of Living (inflation) increases. Input 50% into cell A27. This is how much Social Security will be taxable. Input the name of the biggest investment into cell A123 - call it "Assets" for now if you're confused. Input the current value of all retirement / investment assets into A124 (don't input home equity, vehicles, or personal property). Input the current age of the oldest person into A125 (shown in the middle of B121). Input the age that the oldest person will retire at into cell A126. (shown at the right of cell B121). Asset's growth rate: Input 8% into cell A127. If this investment is mostly in qualified retirement plans (401k, IRA, etc.), then input 100% into A128. If it's not, input 50%. Enter 6 into cell A134. Ensure that cells D4 and D6 do not display any red error messages. If they do, then they tell you how to fix your input. That's it. Now just look at the sheets to the left of the Master Input sheet to see the results. Using the Monte Carlo feature: This could take over half an hour once you run the macro! You just input data into the Current version, so running the Proposed Monte Carlo Macro won't do anything (unless you input data there too). Go to one of the two far right Monte Carlo sheets. To run a simulation for the Current version, go to the Current Monte Carlo sheet and press control M (hold the control key down and press the M key). If Control M doesn't do anything, then go to Tools, Macro, Run the Current Monte Carlo macro. In Excel 2007, macros are on the far right under the View tab. A macro runs. When it stops and asks you if it's okay to delete the temporary sheet, click OK. It then ends up on the cell with the resulting probability number. To run a simulation for the Proposed version, go to the Proposed Monte Carlo sheet and press control N (hold the control key down and press the N key). If Control N doesn't do anything, then go to Tools, Macro, Run the Proposed Monte Carlo macro. If you're seeing this: #### then either increase your Zoom magnification number (View, Zoom), or make the column or row width wider. This is all that's needed for the most basic input. If you want to play with a proposed version, then copy and paste data into column from column A to column D, or you can input it manually. You cannot just copy and paste from current to proposed inputs - so copy, then right click on the destination cell, then choose Paste Special. Then choose values. Now please read the manual to account for details. Dual RWR information is on the very last page. Quickie Directions for RP and the Free Retirement Calculator Go to the Summing & Input sheet (where the program first opens up to). Input the last name (yours or the client's) into cell A2. Input the first name into A3. For RP: If there is another person, then input the oldest's person's first name into A3, and the youngest person's first name into cell A4 (this is unavailable on the free Retirement Calculator). Input the current year into cell A5. Input the oldest person's year of birth into cell A7. If there is a younger person, input their year of birth into A8 (unavailable on the free Retirement Calculator). Input how much before-tax money is needed to live on an annual basis into A9 (for one or both people combined). Cells A11 - A13 come with input in them already. If there's nothing in them, then input 5% into A11, and 100 in A12 and A13. Input the year retirement is to start for the oldest person into cell F3. Input the year retirement is to start for the youngest person into F4 (unavailable on the free Retirement Calculator). Inflation: Input "3" (which will turn into "3%" after you press enter) into all three cells, F5, F6, and F7. Input the age to start collecting Social Security into cells F9 & F10 (F10 is unavailable on the free Retirement Calculator). Enter 65 if you are confused. If they are older than 65, then you'll need to input their current age. Input $1,500 into cells F11, and F12 (F12 is unavailable on the free Retirement Calculator) if there are two people. This is an average guess of how much Social Security one receives. Social Security Inflation: Enter "2" (which will turn into "2" after you press enter) into F13 for annual Social Security Cost of Living (inflation) increases. Click the sheet tab to the right, called Oldest Asset #1, or press Control and Page Down at the same time, once to go there. Input the name of the biggest investment into cell A4 - call it "Assets" for now. Input the current value of the retirement assets into cell A5 (don't input home equity, vehicles, or personal property). Input the current age of the oldest person, shown in cell A3, into A6. Input the age that the oldest person will retire, shown in cell J3, at into cell A7. Asset's growth rate: Input 8% into cell A8. Ensure cells A9 - 12 have appropriate data input into them if you want to account for contributions to the investment. Return to the Summing & Input sheet. Ensure that rows 14 through 17 of the Summing & Input sheet don't display any red error messages. If they do then the text tells how to fix them. That's it. Now just look at the sheets to the left of the Summing and Input sheet to see the results. Using the Monte Carlo feature: This could take over ten minutes once you run the macro! Go to the far right Monte Carlo sheet. Press control M (hold the control key down and press the M key. If Control M doesn't do anything, then go to Tools, Macro, Run the Monte Carlo macro. In Excel 2007, macros are on the far right under the View tab. If you're seeing this: #### then either increase your Zoom magnification number (View, Zoom), or make the column or row width wider. This is all that's needed for the most basic input. Now please read the manual to account for details. Advice on when it's best to start collecting Social Security |
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