![]() ![]() You’re withdrawing less each year than you would expect to accumulate in interest. If your “Available capital” number is increasing, you would expect to be in great shape. We take the median rate of return from the assumptions sheet and use our friend the FV function to project how much money we will have remaining from our nest egg given our planned annual spending and a median rate of return. ![]() This sheet shows what you expect to have saved at the time (X years from now) when you expect to retire. This Excel template adds a new sheet “Detailed spending in retirement” that ideally will help you understand the Monte Carlo model we’re using and make the whole package more useful. You pick an annual number and the model will use that number to project how often you should expect to be successful given the set of assumptions you provide. The only thing we add to the advanced model’s “Model assumptions” sheet is a “Desired annual spend” range. For an explanation, see our method breakdown which will explain why this is the case.įor the basis of this model take a look at the prior post on the simple model. First I’ll explain how to use the Excel template, then how it works relative to the simpler model, and finally a few things you might want to change or consider.īefore we get going, I will mention again that you shouldn’t look at anything less than a 10 year time horizon with these simulations. Download the template and follow along with the information in this article. If you’re here for a strong Monte Carlo simulation tool for retirement spending then you’re in the right place. If you want a very simple Excel model, start with our bare bones version to improve your understanding. ![]() If you’re looking for an explanation of Monte Carlo please take a look at our breakdown of the method before this piece. ![]()
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