Break down the stock balance

Each year, you will sell stocks to ensure that you have enough money to continue to withdraw money for your expenses. You will need to calculate the stock sales in column D and the beginning of the year stock holding in column E. Remember, that stock holding has a different formula for year 2 and on:

= Year End Stock Holding + Stock Sales / (1 - Capital Gains Tax + Capital Gains Tax * Last Years Tax Basis / Last Years End Stock Holding)

Because this spreadsheet includes a lot of model values, you will use values that will be explained more in the next video. Add the stock sales and holdings, and take note of their values, as these fields are often where a nominal model indicates problems. Be sure to expand the column cells to see the full name of the header!