Excel Retirement Planning Automation

How can I create an automated Excel model to plan for retirement? I’d like to input my current age, retirement age, current savings, monthly contributions, and expected returns. Please give a detailed guide on formulas and visualizations.

Creating an automated Excel model to plan for retirement involves setting up formulas to calculate various retirement metrics and creating visualizations to analyze the data. Here is a step-by-step guide to help you along the way: Step 1: Set up the basic input section - Create a new Excel workbook and label the first sheet as "Retirement Plan". - In cell A1, type "Current Age" and in cell B1, type "Retirement Age". - In cell A2, type "Current Savings" and in cell B2, type "Monthly Contributions". - In cell A3, type "Expected Returns". Step 2: Input your current age, retirement age, savings, contributions, and expected returns - In cell B1, input your current age. - In cell B2, input your retirement age. - In cell B3, input your current savings. - In cell B4, input your monthly contributions. - In cell B5, input your expected returns as a percentage (e.g., 5% for 5% returns). Step 3: Calculate retirement savings at retirement age - In cell B7, type "Retirement Savings". - In cell C7, enter the following formula: =B3 + (B4 * 12 * (B2 - B1)) + ((B3 + (B4 * 12 * (B2 - B1))) * (B5/100)) This formula adds your current savings, contributions over the remaining years until retirement, and the expected returns on your investments. Step 4: Create a visualization for retirement savings - Select cell B7 and go to the "Insert" tab. - Choose an appropriate chart type, such as a column chart or a line chart. - Adjust the chart formatting as desired. Step 5: Calculate monthly contributions needed for retirement goals - In cell B9, type "Monthly Contributions Needed". - In cell C9, enter the following formula: =((B7 - B3) / ((B2 - B1) * 12)) This formula calculates the additional monthly contributions required to achieve your retirement savings goal. Step 6: Create a visualization for monthly contributions needed - Select cells B9 and B4, then insert a bar or column chart to compare the contributions needed with your current monthly contributions. Step 7: Calculate retirement age based on a savings goal - In cell B11, type "Target Retirement Savings". - Input your desired retirement savings goal in cell C11. - In cell B13, type "Retirement Age (Target Savings)". - In cell C13, enter the following formula: =B1 + ((C11 - B3) / (B4 * 12)) + ((C11 - B3) / (B4 * 12)) * (B5/100) This formula calculates the retirement age needed to reach the desired savings goal. Step 8: Create a visualization for retirement age based on savings goal - Select cells B13 and B1, then insert a bar or column chart to compare the target retirement age with your current retirement age. Step 9: Add additional analysis and visualizations (optional) - Consider including other retirement metrics, such as expected annual retirement income, required rate of return, or adjusting expected returns based on risk tolerance. - Create additional visualizations, such as a pie chart to show the distribution of retirement savings by asset class. Remember to regularly update your inputs and review the model as your circumstances change. This automated Excel model provides a foundation for retirement planning, but professional financial advice should be sought for a comprehensive retirement plan.