Preparing to retire takes careful planning that begins years in advance. It's helpful to have the right tools at your disposal. If you’re a numbers person and like to tinker around in Excel, then these planning tools are going to be right up your alley.
These tools cover a range of topics, from taxes to stocks. They all can be used to help you make smarter decisions about your money, whether you plan to retire early or years from now.
The Flexible Retirement Planner
The Flexible Retirement Planner offers a free demo version for download on its website. This spreadsheet takes basic inputs such as your current age or the age you want to retire. It also accounts for the total amount you have saved in tax-deferred, taxable, and tax-free accounts. You can get an estimate of the rate of return on your savings and your tax rate. Lastly, the planner can help you see how much you need to contribute to your savings yearly.
The planner then runs some simulations to account for different investment outcomes. It then gauges your chances of success, which means that you'll be able see how long you can make your money last.
Note
A planner can help you run through the many ways your plan to retire can change.
The site also offers a series of free planning spreadsheets for download under its Tools section. These more targeted spreadsheets include a Portfolio Asset Allocation Tool, a TIPS Ladder Builder, and a Portfolio Withdrawal Simulation.
Simpleplanning
Many retirees are caught off guard by how large their tax bill is in retirement. Simpleplanning provides a detailed tax calculator that allows you to create a model of a complete tax return. The demo version is free, but the Complete Planner comes with other features. It has a built-in retirement planner, budget planner, net worth planner, and mortgage planner. The planner is fairly priced at $39.95.
Vertex42
Vertex42 specializes in Excel templates and offers a wide range of free spreadsheets for all types of money planning and forecasting. It has many retirement templates that can help you work out how to fund your later years.
It's has a simple planning calculator that allows you to plan how much to save. It also offers other calculators for annuities, planning withdrawals, and weighing your 401(k) savings and growth. The firm offers paid versions of some of its products for financial advisors.
Financial Architects
Financial Architects is a wealth management firm that lets you access its spreadsheets online for free. Scroll down the page to see retirement planning spreadsheets and articles sorted by subject.If you're planning on retiring soon, you might want to look at a few of them. The One-Person Social Security Breakeven Spreadsheet and the Pension Option Analysis Spreadsheet are two excellent sheets that can help you analyze your future income.
Note
Crunching the numbers is one reason many people avoid planning for retirement. Software and spreadsheets do this for you, letting you focus on your plan.
It also has an Investment Return Matrix Spreadsheet and the Joint Life Probability Spreadsheet that are great if you're an investor. However, you’ll need a good working knowledge of Excel to use these tools.
TaxTools
CFS Tax Software offers programs for tax professionals. Its software isn't free, but the price for its TaxTools packages is reasonable enough ($199 a year). If you do your own returns, you might find this program ideal.
One of the CFS tax planning tools lets you compare up to five future years side by side. This is an ideal feature for retirees, as you can project the impact taxes will have on your money when you start your required minimum withdrawals from your IRA or 401(k).
You can also analyze your Social Security benefits with these tools. The fully functional, free demo download lets you try before buying; the only limitation is that the downloads may not print or generate forms for you.
Ultimate Estate Planner
The Ultimate Estate Planner is a website whose resources and tools are primarily for practicing financial planners, accountants, and attorneys. But its reasonably priced charts, calculators, and software are so user-friendly and educational that many individuals may find them valuable.
You can find them under the "Charts for Clients" vertical of the "For CPAs" and "For Financial Advisors" sections. Their topics range from a white paper on capital-gains harvesting to IRA Beneficiary Trust Bundle packages.
Frequently Asked Questions (FAQs)
When should you start planning for retirement?
It's never too early to start planning for retirement, and if you're earning steady paychecks from a job, you should start saving right now. Most Americans start saving for retirement in their 20s after graduating from college.
Who should you talk to about retirement planning?
Financial advisors will help you figure out your retirement situation, but make sure you use a financial advisor that specializes in retirement planning. Financial advising is a broad career that can cover any aspect of your financial life. If your primary concern is retirement, find a financial advisor with that as their primary focus.
What rate of return should you use for retirement planning?
Your expected rate of return should be based on your portfolio. If your portfolio consists of index funds, then you can look at historical annualized returns to get a sense of what you can expect. If you have a fixed-income portfolio, then that's even easier because you know exactly what you're expected to receive from those investments.
FAQs
Using Excel Formulas for Financial Calculations
For example, you can use the PMT function to calculate future savings based on a fixed interest rate and regular contributions. Excel's goal-seeking feature can help you determine the necessary savings amount to achieve a specific retirement goal.
How to use Excel for retirement planning? ›
Using Excel Formulas for Financial Calculations
For example, you can use the PMT function to calculate future savings based on a fixed interest rate and regular contributions. Excel's goal-seeking feature can help you determine the necessary savings amount to achieve a specific retirement goal.
What is the most accurate retirement calculator? ›
Rowe Price Retirement Income Calculator and MaxiFi Planner are two of the best tools. It is important to keep in mind that retirement calculators rely on accurate information and realistic assumptions. In other words, if you put garbage in, you get garbage out.
Does Quicken have a retirement planner? ›
The interactive Lifetime Planner in Quicken for Windows helps you build a complete retirement plan step by step, with “what-if” tools to help you keep it on track.
What is the most popular retirement income plan? ›
Defined contribution plans: These are now the most common type of workplace retirement plan. Employers set up these plans, such as 401(k)s and 403(b)s, to enable employees to contribute to an individual account within the company plan — typically via payroll deduction.
What is the 4 rule in retirement planning? ›
The 4% rule limits annual withdrawals from your retirement accounts to 4% of the total balance in your first year of retirement. That means if you retire with $1 million saved, you'd take out $40,000. According to the rule, this amount is safe enough that you won't risk running out of money during a 30-year retirement.
What is the best way to set up a retirement plan? ›
If your employer offers a retirement savings plan, such as a 401(k) plan, sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, compound interest and tax deferrals make a big difference in the amount you will accumulate.
What is the $1000 a month rule for retirement? ›
The $1,000-a-month retirement rule says that you should save $240,000 for every $1,000 of monthly income you'll need in retirement. So, if you anticipate a $4,000 monthly budget when you retire, you should save $960,000 ($240,000 * 4).
Is $600,000 enough to retire at 65? ›
You expect to withdraw 4% each year, starting with a $24,000 withdrawal in Year One. Your money earns a 5% annual rate of return while inflation stays at 2.9%. Based on those numbers, $600,000 would be enough to last you 30 years in retirement.
Is $1,000,000 enough to retire at 65? ›
Yes, it is possible to retire with $1 million at the age of 65. But whether that amount is enough for your own retirement will depend on factors that include your Social Security benefits, your investment strategy and your personal expenses.
What are the differences between Quicken Simplifi and Quicken Classic? For powerful, easy-to-use financial management, Quicken Simplifi is your go-to choice. It's a cloud-based app designed for web & mobile. For more robust tools and in-depth features, our Quicken Classic line is a great option.
Can I do my own retirement planning? ›
You don't necessarily need a financial pro to help you plan for retirement. If you don't already have a basic understanding of investing, take some time to learn about stocks, mutual funds, and other places to put your retirement savings. Make sure you understand the types of investment vehicles and their rules.
Does Fidelity have retirement planners? ›
We can help you organize your money and align your goals with a plan. Try our retirement planning experience for free. Sign up, see where you stand, and save your plan. Virtual Assistant is Fidelity's automated natural language search engine to help you find information on the Fidelity.com site.
What is a good monthly retirement income? ›
Average Monthly Retirement Income
According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.
How much money do you need to retire with $100,000 a year income? ›
So, if you're aiming for $100,000 a year in retirement and also receiving Social Security checks, you'd need to have this amount in your portfolio: age 62: $2.1 million. age 67: $1.9 million. age 70: $1.8 million.
Is $300,000 a good retirement amount? ›
If you've managed to save $300k successfully, there's a good chance you'll be able to retire comfortably, though you will have to make some compromises and consider your plans carefully if you want to make that your final figure.
What is the formula for retirement in Excel? ›
You may use the EDATE function to determine when someone's retirement date will be based on their birth date.
Can Excel be used for financial planning? ›
Microsoft Excel is a powerful tool that can help you create and manage your financial plan. Learn how to use Microsoft Excel to create a small business financial plan on your Surface laptop or 2-in-1 PC.
What are the 7 steps in planning your retirement? ›
To thoroughly plan your retirement, the following 7 steps (in any order) are considered essential: think, budget, share, act, save, protect and review. Click the picture below for more detail about the seven steps for planning your retirement. Virtual asset spot ETFs will soon be listed and traded on HKEX.
How do you calculate retirement planning? ›
What is the retirement calculation formula?
- FV = Future Value.
- PV = Present Value.
- r = expected inflation at 6%
- n = time left until retirement (60 years – 35 years) = 25 years.
- FV = 35,000 (1+0.06)^25 = Rs 1,50,215.5.
- Note – The values used above are only for the purpose of the example.
