Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Spreadsheet SWR question
Old 08-01-2009, 08:40 AM   #1
Full time employment: Posting here.
cardude's Avatar
Join Date: Feb 2006
Posts: 599
Spreadsheet SWR question

I set up a simple spreadsheet tracking my monthly SWR, but I'm wondering if I'm double counting my cash pile. I have a budget set up, and then I enter all our actual expenses and then subtract our income (real estate rentals, DW income and return on cash) to come up with a net amount of cash needed monthly to live on. I use that cash amount needed to come up with my annualized SWR (multiply it by 12 and then divide it by the total portfolio value).

Am I double counting the cash since I include it in the total portfolio value denominator but also reduce expenses by the amount of interest it throws off? Should I reduce the total portfolio amount by the cash pile?

cardude is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-01-2009, 09:45 AM   #2
Thinks s/he gets paid by the post
walkinwood's Avatar
Join Date: Jul 2006
Location: Denver
Posts: 2,433
If you are including the cash in your portfolio value, the interest should also be added to the portfolio value. It should not be used to offset your expenses. ie. if I correctly understand what you're saying.
walkinwood is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Tracking basis with spreadsheet, how to structure the spreadsheet? bamsphd FIRE and Money 13 08-03-2009 09:31 AM
ER 6 Ys ago at 52 with few bucks and a spreadsheet. Have a question miki Hi, I am... 5 05-11-2008 12:48 AM
Spreadsheet to ease SWR calculations using Guytons Decision Rules walkinwood FIRE and Money 7 08-25-2007 09:28 AM
Another SWR question Kathleen FIRE and Money 22 11-04-2004 08:18 PM
SWR Question Momtwo FIRE and Money 2 10-21-2004 03:00 PM


All times are GMT -6. The time now is 05:54 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.