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I want help double checking a personal cash flow spreadsheet I have created
Old 06-09-2011, 11:50 AM   #1
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I want help double checking a personal cash flow spreadsheet I have created

Hi
I need help double checking a personal cash flow spreadsheet I have created
You could help make sure I didn’t leave out anything or made incorrect assumptions
I could send it to you
Or we could talk about
Whatever is convenient for you
Please email me
Thanks
Ric
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Old 06-09-2011, 10:05 PM   #2
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Why don't you tell us something about yourself first.

You could tell us about your assumptions and so forth and what you want to do. Do you want to link to another financial program? To the net to get daily updates on your investments? To your bank?
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Old 06-10-2011, 02:29 PM   #3
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I have created a spreadsheet that projects my/our income and expenses from my current age of 68 to age 100
And factors in different inflation rates for each category
My goal is to calculate how much I can spend each year and have my assets equal zero at age 100
I plan on adjusting the variables every six months based on the last 12 months and my expectations of future economic trends and my/our lifestyle
I am willing to share the spreadsheet, but would like to double check it with someone first.
Could you help me double check it?
Thanks,
Ric
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Old 06-10-2011, 02:47 PM   #4
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Originally Posted by RicDee View Post
My goal is to calculate how much I can spend each year and have my assets equal zero at age 100
Why?
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Old 06-10-2011, 03:12 PM   #5
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So we can spend all our money before we die
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Old 06-10-2011, 03:26 PM   #6
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So we can spend all our money before we die
Again, I just don't understand your logic.

I have a very simple saying, "I'd rather die with money than live without it".

That means that I don't have to worry about both sides of the equation (e.g. having enough, having "too much") but can concentrate on the one option that supports my own view.

IMHO, there are too many "aw shi*" situations in life (DW/me have lived through many), where being financially secure (meaning having more assets than needed) is much preferable to not having enough if a financial disaster arises.

And if I die with more money than DW/me needed to cover our retirement wants/desires (hopefully our situation), than there are options that will allow us to bequest that "extra" for the benefit of another person, group, or association, based upon our criteria.

BTW, in our case, our remainder estate will be both used to help cover the needs of our (adult, disabled) "child", with the great majority of our funds going to our named non-profit charities in order to allow them to continue their "good works", but also avoid taxes (at whatever rate) of our substantial tax-deferred holdings.

But everybody is different, and that's why I asked the question.
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Old 06-10-2011, 03:34 PM   #7
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If we have no one to leave our money to
I think it would be logical to spend it on things we enjoy
rather than let it sit in the bank
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Old 06-10-2011, 03:42 PM   #8
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Originally Posted by RicDee View Post
If we have no one to leave our money to
I think it would be logical to spend it on things we enjoy
rather than let it sit in the bank
The only safe way to do this is to buy some sort of fixed immediate annuities, or longevity insurance, or some synthetic version of these things.

They have been discussed from time to time on this board, but they involve complex and for me somewhat tedious concepts that I do not understand well.

Ha
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Old 06-10-2011, 03:50 PM   #9
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I'm afraid that what you want, RicDee, is impossible.

Consider the following scenario.

You have been diligently following your spreadsheet for a number of years, and you find that you are on track to zero out your accounts by your projected year of death, based on your experience so far.

Suddenly, you contract a life-threatening medical condition. The doctors agree that with specialized treatment, you can be completely cured and continue to live a productive life. Unfortunately, that treatment will cost two-thirds of your remaining assets. You decide to go for it.

At that point, you are reduced to living those remaining years in abject poverty, whereas if you had originally planned for a healthy balance to remain at your death, you would have been fine.

This is ridiculously oversimplified, but the point is that we can't see the future, and the best laid plans of mice and men gang aft agley.
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Old 06-10-2011, 03:54 PM   #10
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I think a "safer way" would be to put the money in a guaranteed safe place
and withdraw it as per the calculations allow
So I am asking help for help
double check the calculations and method
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Old 06-10-2011, 04:00 PM   #11
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You should be able to post your spreadsheet here using the "manage attachments" function of the "Go advanced" reply button. That would allow anyone who was willing to do so to review your formulas and calculations.

You might want to put in fictitious numbers if you have concerns about privacy.
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Old 06-10-2011, 04:02 PM   #12
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Sounds to me that you should buy an annuity or a gun.
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Old 06-10-2011, 04:05 PM   #13
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Gee, it's hard to say Ric, but it seems like you might be trying to put way too fine a point on this. It would be nice to spend your last penny when you take your last breath, but I don't think we (me and DW) have ever been able to execute any plan to that level of precision. You might consider using ranges of numbers as targets.
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Old 06-10-2011, 05:27 PM   #14
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RicDee, I see two possibilities here:

/1/ You do not yet have the financial sophistication to take the kind of decisions which your posts imply. Being able to get Excel to reconcile spending and capital with a percentage for inflation and another for portfolio growth is some considerable way from being sufficient.
or
/2/ You are a troll.

Assuming that /2/ does not apply, trust me, /1/ does. Spend some time here. Learn from people who have FIREd successfully. Learn why FIREcalc, though far from perfect, is already way more sophisticated than any of us - including 30+ year IT veterans *raises hand* - are going to program in Excel any time soon. But don't ask us to check your spreadsheet. If it's wrong, you'll be discouraged, and if it's "right", it still won't be very useful.
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Old 06-11-2011, 03:04 PM   #15
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Quote:
Originally Posted by RicDee View Post
I have created a spreadsheet that projects my/our income and expenses from my current age of 68 to age 100
And factors in different inflation rates for each category
My goal is to calculate how much I can spend each year and have my assets equal zero at age 100
I plan on adjusting the variables every six months based on the last 12 months and my expectations of future economic trends and my/our lifestyle
I am willing to share the spreadsheet, but would like to double check it with someone first.
Could you help me double check it?
Thanks,
Ric
Sure, it seems pretty straightforward.

Unlike others here, I think this is a sensible exercise.
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Old 06-12-2011, 08:31 AM   #16
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Quote:
Originally Posted by RicDee View Post
I have created a spreadsheet that projects my/our income and expenses from my current age of 68 to age 100
I am willing to share the spreadsheet, but would like to double check it with someone first.
Could you help me double check it?
Thanks,
Ric
Just attach it to a post here. If it's Excel, most if not all of us can take a look. What you describe is a simple spreadsheet, it would be easy to critique, and nothing wrong with the exercise.

If you don't know how, create or edit a post, and note the "Additional Options" section below the box where you create your post text. There is a section/button for "Manage Attachments." Click on it and follow the instructions, you'll probably be browsing to find your XLS to attach. Easy peasy...
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Old 06-12-2011, 10:12 AM   #17
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including 30+ year IT veterans *raises hand*
My hand is raised (1965-2007 in the field).

IMHO, it's not the spreadsheet, but rather the idea of what is trying to be accomplished in the scenerio.

I believe that is the "problem" with those that dissent (including me).

There needs to be a bit more of context in what is trying to be acertained, IMHO.

Hey, what do I know (I spent tooooooo many years in IT ).
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Old 06-12-2011, 10:36 AM   #18
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I plan on adjusting the variables every six months based on the last 12 months and my expectations of future economic trends and my/our lifestyle
Sounds like Bud Hebeler's "Analyze Now!" system.

Not that I expect we'll be hearing from Ric anytime soon...
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Old 06-12-2011, 11:43 AM   #19
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Originally Posted by RicDee View Post
If we have no one to leave our money to
I think it would be logical to spend it on things we enjoy
rather than let it sit in the bank
RicDee: as others have pointed out, it's impossible to devise a plan where you'll spend your estate down to zero. Too mary variables. Why not look at what you need to have a comforable and enjoyable life while providing a healthy cushion for the unexpected?

If you are worried about having no one to leave your money to, why not select a charity to benefit from any assets you leave?
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Old 06-12-2011, 04:17 PM   #20
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RicDee: as others have pointed out, it's impossible to devise a plan where you'll spend your estate down to zero.
Upon further reflection, one way to do that would be to put every penny of your assets in an annuity.
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