I have updated my retirement spreadsheet using much of the feedback I received from my earlier posting.
I changed some of my assumptions:
Here are some of the major features I "upgraded":
- Market return: 8.5% (1.5% below actual market return for past 100 years)
- Inflation: 3.5%
- Since the market return is not inflation-adjusted, I applied inflation to my expenses (after un-padding them) from now until retirement.
- I made a cell for the percentage of Brokerage withdrawals that are taxable. Long Term Capital Gains and Qualified Dividends will likely be taxed at the 15% rate based on my tax bracket for most of my retirement.
My tax bracket will be 25-33% so say 28% on average. So 15% is a little more than half of 28%, therefore if I count a little more than half of my withdrawals from my brokerage account (say about 55%) as taxable, I would essentially be making the treatment equivalent.
- Included the Personal exemption I missed.
- Added state taxes into the taxes, duh.
- Calculated and graphed my effective tax rate.
- Automated the use of traditional 401K funds if I retire between 55 and 59.5 (my employer's plan allows it)
- Automatically combined all pre-tax and post tax accounts separately into appropriate IRA accounts at age 59.5 (makes things simpler)
- Automated the calculations and balance transfers to use the 72t rule if I retire prior to 55. (although it doesn't look like I will be able to retire quite that early) The calculation is based off of a desired monthly withdrawal and compares the balance that would be required to produce it using RMD rules with the available pre-tax account balances and gives a "go" - "no go" decision on the planning sheet.
- Automated the calculation of Required Minimum distribution in my Trad IRA and put a "go"-"no go" indication on the Planning sheet if RMD is violated with my plan.
I tried to upload rev 1 to this post, but it now exceeds the 2M limit (at least with the .xls extension). So here is the link to share it from Amazon Cloud:
Thanks to everyone for the suggestions and help with pointing out errors. Please let me know if you have any further suggestions or see any more errors.