The low-stress retirement calculator now allows the user to determine monthly investment amount required to build a retirement corpus by varying asset allocatio (equity allocation) with age.
Instead of a fixed asset allocation of debt and equity up to retirement, the user can (typically) gradually decrease equity exposure with age. This was an idea suggested by CFP Deepesh Mehta. A small Excel macro is necessary to handle this.
The sheet also incorporate a more accurate EPF corpus calculation as suggested by Kartick Krishnan. I have integrated the features of the EPF contribution schedule with the low stress calculator.
Regualr readers may reacall that there is also an even low-stress retirement calculator
The 'even low stress' is best suited for investors who have been investing for a while and have a reasonable corpus built up. Instead of using a single post-retirement return, a bucket strategy based on an income ladder is used.
If you a young earner, use the current version of the low-stress sheet.
Download the updated sheet by clicking on this line!
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sir
the amount to be invested is extra amount on top of what we are currently doing or total amount ?
Total amount excluding EPF
sir
the amount to be invested is extra amount on top of what we are currently doing or total amount ?
Total amount excluding EPF
Dear Pattu,
I may sound a bit pedantic but I would like to suggest a cosmetic change. For the below values
value of current equity investments,
value of current taxable debt investments
value of current tax-free debt investments, these could be earmarked for any goal. I would suggest to explicitly mention that the values expected here are meant for the ones allocated to retirement goal. I understand that it might be obvious coz its a retirment calculator but I actually made the mistake of entering the whole investment and then only realized
🙂 Will mention it.
Dear Pattu,
I may sound a bit pedantic but I would like to suggest a cosmetic change. For the below values
value of current equity investments,
value of current taxable debt investments
value of current tax-free debt investments, these could be earmarked for any goal. I would suggest to explicitly mention that the values expected here are meant for the ones allocated to retirement goal. I understand that it might be obvious coz its a retirment calculator but I actually made the mistake of entering the whole investment and then only realized
🙂 Will mention it.
how can we incorporate VEPF contribution in this (assumption being we will keep them constant)
You don't need to incorporate it in the EPF sheet. Look at the monthly investment amt and adjust accordingly
how can we incorporate VEPF contribution in this (assumption being we will keep them constant)
You don't need to incorporate it in the EPF sheet. Look at the monthly investment amt and adjust accordingly
thanks and sorry asking more ...is retirement sheet B42?..
thanks and sorry asking more ...is retirement sheet B42?..