ONLINE AND DOWNLOAD LINKS:
- Google Sheet version: aftertax-spending-plan.
- Microsoft Excel version: aftertax-spending-plan.xlsx.
- LibreOffice Calc version: aftertax-spending-plan.ods.
- Log into your Google account.
- Select the "File -> Create a copy..." menu item.
- The copy will be yours to play with and modify.
* At the time this post is being written, it only works for people in their accumulation period. Future versions are likely to also work for retirees.
It's very easy to use.
Inputs include: current age, retirement age, current salary, current portfolio balance, the "current amount (montlhy) at age 65" found on one's last QPP statement, and the portfolio's asset allocation. The spreadsheet automatically calculates this year's approximate contributions and taxes as well as a projected retirement plan based on VPW with OAS and QPP delayed until age 70. Most importantly, the spreadsheet determines this year's monthly budget (after tax). The goal of the spreadsheet is to determine a sustainable monthly budget every year.
Market returns are unpredictable. The portfolio will fluctuate. It is thus important to update the inputs every year (and update the Rate sheet) to recalculate a new budget based on the new reality at that point. Similar to VPW, it's a flexible spending plan. If the portfolio has grown more during the year, spending will increase; if it has grown less, spending will decrease.
I initially developed it for myself, so it's currently using QC tax parameters and QPP. It could be improved to be usable during retirement, too.
1) Would there be some interest for such improvements and getting this spreadsheet to support other provinces and CPP?
2) Is there any other comment on the spreadsheet?