A tool to check if you are on track to retire early

Published: February 25, 2016 at 9:18 am

Here is a simple tool to check if you are on track to early retirement. It is also suitable for normal retirement and will work on Google sheets as well. Users can enter the current value of the corpus from online portfolio trackers.

It is basically an Excel retirement calculator, with a focus on tracking. The entries that will change with each retirement plan have been segregated.

Therefore, once a user enters the inputs for the first time, the effort required for tracking progress to retirement will take very little time.

I have been using this sheet integrated with the Automated Mutual Fund & Financial Goal Tracker. If you have been this tracker, you can also do the same by inserting the sheets in this tool inside the tracker and making suitable changes.

I had earlier written about my progress to financial independence: Retirement Planning: My Story So Far. Upon review, I found a big mistake, but thankfully on the side of caution. As I went about correcting that mistake, this sheet came into being.

The retirement tracker tool integrates the following calculators:

The low-stress retirement calculator  (this is a basic retirement calculator with asset allocation explicityly factored in)

Inflation-protected Income Simulator (here the retirement is assumed to grow in different buckets of varying risk. First time users who are not familiar with the idea of bucket strategy can consider reading: Generating an inflation-protected income with a lump sum

EPF Corpus Calculator with Contribution Schedule (this calculates EPF corpus with all necessary details. There is talk about changes in EPF rules – can anyone please let me know if that is true and what they are?)

Please note tracking a retirement corpus is serious business and therefor setting up the sheet for the first time will require about 15-30 minutes depending on your comfort level. However, once you have done that, tracking becomes quite simple.

Early-retirement-tracker

The green cells have to updated with current values each time the retirement plan is reviewed.

The progress can be tracked from the outputs (marked in red). The monthly investment amount should always be manageable with each review.

Once the percentage completion of corpus targets head close to 60%, 70%, the inputs in the bucket strategy sheet can be reviewed closely. As of now, the inputs are reasonable and conservative.

Do give this a try and let me know if you can suggest improvements.

Download the early retirement tracker

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About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com
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