Add withdrawals and money made
Let's update our previous retirement sheet with the annual withdrawal amounts and the money you made in income and stocks by replacing the numbers provided with formulas.
For the second year of annual withdrawals use = Annual Withdrawal * (1 + Inflation) ^ (Year - 1)
by filling in the right cell numbers and absolute references for initial variables.
For income after tax, use = Fixed Income Beginning * Return on Fixed Income * (1 - Ordinary Tax Rate)
.
For dollar return on stocks in each year, use = Stock Holding Beginning * Overall Percent Return on Stocks
.
This exercise is part of the course
Financial Modeling in Google Sheets
Exercise instructions
- In
F14
, enter the initial withdrawal using=Initial Withdrawl
inB9
. - In
F15
, use=B9*(1+B7)^(A15-1)
and correct the formula for absolute references forB7
andB9
. - In
G14
, use=C14*Fixed Income*(1-$B$5)
and fill in the Fixed Income with an absolute reference forB3
. - In
H14
, use=E14*B4
, and correct the formula for the absolute reference forB4
. - Copy the last cell in each column down through Year 15 by on row
28
.
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