Low-stress retirement calculator with flexible asset allocation

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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14 thoughts on “Low-stress retirement calculator with flexible asset allocation

  1. lakshminarasimman

    sir
    the amount to be invested is extra amount on top of what we are currently doing or total amount ?

    Reply
  2. lakshminarasimman

    sir
    the amount to be invested is extra amount on top of what we are currently doing or total amount ?

    Reply
  3. Pratheek

    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

    Reply
  4. Pratheek

    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

    Reply

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