How to calculate retirement fund

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KCLau

Personal finance author

30 Comments

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  • susan ho ho

    Reply Reply May 2, 2013

    Hi KC,
    Can you explain what is the different of Capital Utilization and Capital Preservation?

  • susan

    Reply Reply May 2, 2013

    Hi KC,
    I want to have a soft copy of Excel Retirement Calculator, I m joint MAS in end of Dec 2012, its is already expired?

    • KCLau

      Reply Reply May 2, 2013

      @Susan, you just need to login on the right sidebar at the top in order to see the download link.

      About your question
      Capital Utilization means that the retirement fund you saved, will be depleted over time.
      Capital Preservation means that you only spend the return earned from the entire retirement fund during retirement. Your fund will still be intact.

  • Phyllis

    Reply Reply May 2, 2012

    Hi, KC,

    Sorry, i got it from the video clips already. Thanks.

  • Phyllis

    Reply Reply May 2, 2012

    Hi, KC,

    What’s the definition and difference of capital utilization and capital preservation?

  • Michael Tsen

    Reply Reply July 24, 2011

    I made a few changes

    . on EPF Calc, # of years to save = 55 – current age @ [Retirement]K4

    . delete all the contributions that may not happen in Column C & D, I may not get the job forever but my EPF will continue to grow.

    . in [Retirement], KWSP[K29] =MAX(‘EPF Calculator’!E14:E57)

    . in [Mini Retirement] I add some guideline figures, one above Lump Sum, =PV(G31/12,K8,,-K25) and one above Monthly =PMT(I31/12,K8,0,-K25). These will auto show me how much I need to save every month in order to acheive my goal etc.

    EPF has the age 55 limitation, I tried to retire at age 50 but much more work is needed in this formula, ie. I can’t count on EPF until age 55 ( or 60 ), so I need some minimum saving to last until I can withdraw EPF etc. It seems like a lot of work is needed so i didn’t change for that, for now I assume this tool is good for standard age 55 retirement analysis.

    . in [Retirement], I added some similar guideline figures
    =PV(G52,K8,0,-K44) above Lump Sum
    =PMT(I52/12,K8*12,0,-K44) above Monthly

    you can also create 2 more to show for Capital Preservation but that didn’t much to me. Whatever figures I get from Capital Preservation, my job is just to save MORE than that.

    • KCLau

      Reply Reply July 24, 2011

      It’s great that you can customize the spreadsheet to suit your own needs.

  • Michael Tsen

    Reply Reply July 24, 2011

    Hi KC, sorry I am a bit slow. What is inflation adjust return rate ?

    • KCLau

      Reply Reply July 25, 2011

      Inflation adjusted return rate is the real return rate that takes inflation into the calculation. Inflation-adjusted return reveals the return on an investment after removing the effects of inflation.
      Removing the effects of inflation from the return of an investment allows the investor to see the true earning potential of the security, without external economic forces. For example, say an investor held a bond that returned 4% over one year. Examining only the return shows that this bond earned a positive income. However, if inflation for the year was 5%, the real rate of return on the bond becomes -1%.

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