Retirement Planner 2.0 (Link 3)

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1	Step 1: Make a copy of this spreadsheet : File > Make Copy. Or download it. Step 2: If you have not used this tool before watch this instructional video Step 3: If you've used the planner before, watch this video detailing the updates in this version Disclaimer: This model does not give financial advice and should not be relied upon to make financial decions. The model may contain errors and James Shack cannot be held accountable for it's accuracy. All figures entered should be in todays money, the model takes care of inflation.				Looking for help with financial planning? Book an initial call here to find out how we can help							Tip - Zoom in by double clicking the Y axis and setting the Max Value
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3																				Key points about this graph: - Other than the yearly returns, this uses the same assumptions as the other graphs (cashflows, fees, tax, risk) - It uses US market data because it's hard to find global data that goes back far enough. - The data set starts from 1928. Here is a link to the data source. - It takes into account historical inflation - A "Medium Risk (40-60% Equities)" portfolio will have: 50% invested in the S&P 500 25% invested in US Government Bonds 25% in US Investment Grade Corporate Bonds Observations (WARNING - USE THIS DATA WITH CAUTION) - Over the last 100 years the US stock market has done exceptionally well, it's unlikley that we will see another period like it. - Over the last 40 years interest rates have been falling, which has provided a headwind to bonds and lower risk portfolios. We should not expect to see this happen again in the near future. - A globally diversfied or UK centric portfolio would have performed worse in most periods (that is not a valid reason to only invest in the US moving forwards) - Given this, you'll notice that most of these historical scenarios fit between the "Middle" and "Lucky" forward looking scenarios - The 1920's and 1960 to 1970 were some of the worst times to retire
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5		>>>>>>>>>>>>>>>	Editable Fields	<<<<<<<<<<<<<<<<<
6	You
7	Your Age today	50
8	Retirement Target	57
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11	Your Liquid Assets	Current Value	Annual Contributions	Annual Change in Contributions	Investment Risk	Real Return (less fees & tax adjustment)
12	Pensions	£200,000	£6,000	2.00%	Medium/High Risk (60-80% Equities)	3.22%
13	ISAs	£100,000	£5,000	2.00%	Medium/High Risk (60-80% Equities)	3.22%
14	Other Investments (not property)				Medium/High Risk (60-80% Equities)	3.03%
15	Cash					-0.50%
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17												Average Annual Real Returns						Start Year	End Year
18	Additional Retirement Income (Gross)	Start Age	End Age	Annual Income (in todays money)			Joint Retirement Expenditure	Start Age (Your age)	End Age (Your age)	Annual Expenditure (in todays money)		You	Unlucky (Lower Quartile)	Middle	Lucky (Upper Quartile)		Scenario 1	1945	1995
19	State Pension	67	100	£10,600			General Expenditure	57	75	£40,000		Pension	0.88%	3.22%	5.63%		Scenario 2	1955	2005
20	Final Salary / DB Pension	60	100	£5,000			General Expenditure (age reduction)	76	90	£30,000		ISA	0.88%	3.22%	5.63%		Scenario 3	1965	2015
21	Part Time Work						Holidays					Other Investments	0.81%	3.03%	5.32%
22	Rental Income (Net of costs)						Mortgage Payments					Partner				Note - Don't pay too much attention to the Lucky Scenarios. If you do get lucky, great, but don't count on it. As financial planners what we're interested in is the Unlucky Scenarios and what levers we can pull to make the plan work if we have to. Question - What would you need to change to survive an Unlucky Scenario?
23	Custom 1						Custom					Pension	0.04%	1.06%	2.09%
24	Custom 2						Long Term Care	91	100	£60,000		ISA	0.04%	1.06%	2.09%
25												Other Investments	0.01%	0.98%	1.96%
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27								The property & mortgage section does not interact with the cashflow model above
28	Your Partner
29							Property Name	Current Value	Average Annual Real Capital Growth (growth after inflation)
30	Partners Age Today	48					Primary Residence	£600,000	2.00%	According to Nationwide, long term real UK house price growth has trended near 2.5%. However average UK house prices have not risen in real terms for 20 years. There will be regional differences within this but either way I recomend using a conservative estimate.
31	Retirement Target	57					Custom 1
32							Custom 2
33	Your Partners Liquid Assets						Custom 3
34	Assets	Current Value	Annual Contributions	Annual Change in Contributions	Investment Risk	Real Return (less fees & tax adjustment)	Property Portfolio
35	Pensions	£100,000			Low Risk (0-20% Equities)	1.06%
36	ISAs				Low Risk (0-20% Equities)	1.06%	Mortgage Name	Interest Only / Repayment	Current Balance	Interest Rate	Remaining Term (Yrs)
37	Other Investments (not property)				Low Risk (0-20% Equities)	0.98%	Primary Residence	Repayment	£80,000	4.00%	7
38	Cash					-0.50%	Custom 1	Repayment
39							Custom 2	Repayment
40							Custom 3	Repayment
41	Additional Retirement Income	Start Age	End Age	Annual Income (in todays money)			Property Portfolio	Repayment
42	State Pension	67	100	£5,300
43	Final Salary Pension
44	Part Time Work
45	Rental Income (Net of costs)
46	Custom 1
47	Custom 2
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