Excel Exercise
You are planning for your retirement. You estimate that you will have $600,000 at the time of your retirement. Your goal is to have a $0 balance at the end of 20 years (at which point you plan on becoming a burden to society and your family). You estimate your expenses at $50,000/Year. You estimate interest on your savings at 5%/year. You estimate inflation at 3%/year. Assume interest and expense payments are made at the beginning of the year.
Objectives:
Determine if $600,000 is sufficient
If not, determine what you will need
Provide all related spreadsheet models
Provide a short recommendation
State any other assumptions you feel you need to make for this exercise