Quote:
Originally Posted by Klaymen
My spreadsheet has the balance of my various accounts, how much will go in them each year,
(e.g. 401k $18K + 9% matching, Roth $5.5K, HSA $6K)
and the longterm rate of investment return which for most of them I now assume to be 6%. Then I have an idea for how much I project to have each year, and from there you multiply by 4% to get your annual withdrawal. Take that number and discount back to what that is worth today. Then add in social security or other pensions.
I think it would be much less practical to say that in 5 years I made it to 5% of the goal because that is clearly not a linear function with compounding going on.

This is pretty much what I have, but I haven't built it up enough I'd want to share it. Y'all would just laugh at it. I probably spent all of 90 minutes cobbling it together.
The big assumption is rate of return, and if I could predict that I'd be in a different line of work. So given that, I try not to overcomplicate the thing. I track my accounts separately, same as you, and then I added on the mortgage and home equity. So I have about the same basic inputs. The $$$ contributions per account, a growth rate for contributions (I assume I will save more over time), rate of return (I typically put in 5%, as a real return vs nominal).
In terms of focus, I put more energy into getting dollars into savings/investments, and don't sweat the 20Y forecast all that much. And I do like firecalc, mentioned above.