Minimum rate of return in retirement

[pb4uski]

^^^ Not sure if I would go that far... interesting perhaps... useful is a stretch IMO

 

[brett]

I do not understand the issue.

You can easily take a good guess on what your personal inflation rate is.

You KNOW what the RoR is on your investment portfolio.

Simple subtraction will tell you if you are on target with your past assumptions or ahead of the game.

And you can make some very basic assumptions about the next 12 months. You can adjust after two quarters, based on actuals or with better insight, negative or positive.

Should take no more than five minutes to do any calculation that will in all probability be as valid or as accurate as any spreadsheet or complicated equation that you may have labored over for a much longer period.

It seems very straightforward to me. Why complicate it?

 

[Samsung4321]

very straightforward

Day to day yours is a satisfactory tactic where you take what is acceptable return for risk from what is on offer.

Strategically the known is Present Value of investable capital. Assumed is the Future Value of investable capital and the period. Unknowns are future rates of return, risk and inflation - which must be guessed / predicted.

Calculating from those values the nominal rate of return required to attain the Future Value of investable capital allows checking that the goal is attainable with adequate certainty.

The single spreadsheet formula presented performs the calculation quickly and easily.

 

[chassis]

@Samsung4321 what do want? Do you want to patent the spreadsheet formula?

 

[Samsung4321]

@Samsung4321 what do want? Do you want to patent the spreadsheet formula?

I've noticed an endemic pandemic of innumeracy. RATE is one inoculant meme.


Mathematical formulae are specifically excluded from patentability in all jurisdictions.

 

[chassis]

I've noticed an endemic pandemic of innumeracy. RATE is one inoculant meme.


Mathematical formulae are specifically excluded from patentability in all jurisdictions.

That's just great. What is your proposal regarding innumeracy?

 

[Samsung4321]

What is your proposal regarding innumeracy?

Example memes, as above. Some horses, led to water, do imbibe.

 

[Andre1969]

I've noticed an endemic pandemic of innumeracy. RATE is one inoculant meme.


Mathematical formulae are specifically excluded from patentability in all jurisdictions.

Ooh, I'm so close...now if you can just use the word "peregrination" in a sentence, I get Bingo!

 

[Samsung4321]

Ooh, I'm so close...now if you can just use the word "peregrination" in a sentence, I get Bingo!

So effortlessly accomplished - just need to quote you. Now on your peregrination from literacy to numeracy, what enlightenments do you offer?

 

[chassis]

..desperately searching for Roget's thesaurus...it has to be here somewhere...

 

[Samsung4321]

Roget's thesaurus

Take the direct route: Google Sheets Function List; then the RATE function turnoff.


Or Excel equivalents: RATE function.

 

[pb4uski]

Leading contender for the first person to be on my Ignore List.

 

[Samsung4321]

Ignore List

The complete list of Excel financial functions.

The most useful: FV, NPER, NPV, PMT, PV, RATE, XIRR.

 

[wrigley]

I s^ck at math!

 

[Dtail]

The complete list of Excel financial functions.

The most useful: FV, NPER, NPV, PMT, PV, RATE, XIRR.

There are many of us who have advanced excel skills, so what's the real point here?

 

[Perryinva]

Yawn. An exercise in uselessness. It is amusing that the OP appears to actually believe he has offered something of value because he knows how to use Excel. ANYTHING he thinks he is doing for the first time or providing a revelation about, has been done ad nauseum by others and either disproven or incorporated in existing tools. Literally zero impact for any practical use. There are people that are apparently too ignorant to see the forest through the trees.

 

[Bigdawg]

Yawn. An exercise in uselessness. It is amusing that the OP appears to actually believe he has offered something of value because he knows how to use Excel. ANYTHING he thinks he is doing for the first time or providing a revelation about, has been done ad nauseum by others and either disproven or incorporated in existing tools. Literally zero impact for any practical use. There are people that are apparently too ignorant to see the forest through the trees.

Nice summary. OP has some issues but most likely few friends. Read all posts in this thread. Wow, what a waste of time. Adding OP to ignore list.

 

[Samsung4321]

There are many of us who have advanced excel skills, so what's the real point here?

There are legions who have none.

 

[Samsung4321]

been done ad nauseum by others

Children the world over still learn times table even after commercialisation of hand held calculators.

My estimation, based on first hand experience, is that < 5% have any knowledge of financial functions, spreadsheet or other, fewer know where and how to apply them and even fewer do.

And like hand held calculators to the arithmetic of large numbers, hand held computers put financial functions in everyone's hand.

 

[Aerides]

Children the world over still learn times table even after commercialisation of hand held calculators.

My estimation, based on first hand experience, is that < 5% have any knowledge of financial functions, spreadsheet or other, fewer know where and how to apply them and even fewer do.

And like hand held calculators to the arithmetic of large numbers, hand held computers put financial functions in everyone's hand.

This forum is made up of a very different group than your estimation. Know your audience: We are a community, not a classroom.

Why don't you take a moment to introduce yourself, personally? We have a section just for that:

https://www.early-retirement.org/forums/f26/

 

[Dtail]

Children the world over still learn times table even after commercialisation of hand held calculators.

My estimation, based on first hand experience, is that < 5% have any knowledge of financial functions, spreadsheet or other, fewer know where and how to apply them and even fewer do.

And like hand held calculators to the arithmetic of large numbers, hand held computers put financial functions in everyone's hand.

You really don't get it that you are coming across as one who knows it all.
Can't you figure that out, based on the responses so far?
When there are new members out of the gate, who express themselves as you are doing, it usually doesn't end well for that member.

 

[Samsung4321]

We are a community, not a classroom.

Sing and dance to the same confirmation bias tune, no knowledge to be imparted and no hypotheses to be advanced or challenged?

What are the community received wisdom tenets that must be defended by the faithful?

 

[Samsung4321]

You really don't get it that you are coming across as one who knows it all.

You too can know all about RATE. Practice, and knowledge, does make perfect.

 

[REWahoo]

Looks like Samsung is packing for a trip.

 

[Dtail]

Looks like Samsung is packing for a trip.

What is the FV of one who has gone itinerant?