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Wealth tracker excel2/18/2023 Required Drawdown – This row shows what percentage of your portfolio you’d need to withdraw every year to sustain your monthly spending (based on the current month’s spending).When this column is consistently over 100%, you’re financially independent! Total Coverage – This row shows what percentage of your total monthly expenses are covered by your portfolio and your supplementary income.Discretionary Coverage – This row shows what percentage of your discretionary expenses are covered by your supplemental income. Necessary Coverage – This row shows what percentage of your essential monthly expenses are covered by your portfolio, using the withdrawal rate set on the FI tab.There are a few interesting calculations that occur on this tab that are worth explaining… Personal Capital can do the same thing but since I started using Mint before Personal Capital came out, I’ve just continued using it for this purpose. To make this step easier, I use to categorize my monthly expenses. This step is really important because you can’t determine if you’re financially independent without knowing how much you spend every year. The Averages tab is where you record your monthly spending. The Investments tab also automatically computes your asset allocation so you can use this sheet for portfolio rebalancing.įinally, the Investments tab computes the total amount of money available before and after standard retirement age (remember though…if you plan to retire early and want to access your tax-deferred money sooner, there are ways to do that). These are the only two values that you need to update on this tab because everything else is calculated automatically from previously-entered data. This sheet is where you can keep track of how much of your HSA you can withdraw early (see this post for how I use my HSA as an investment account) and how much money you’ve contributed to your Roth IRA (which can also be withdrawn at any time). taxable, tax-deferred, etc.) so you can get an idea of how your money will be taxed when you eventually withdraw it. The Investments tab computes the totals of each type of investment account (e.g. The Investments tab uses the values on the Net Worth tab to provide a picture of where your money is located and what you’re invested in. harder to get at, like money in your 401(k)). In addition to computing your net worth, this tab also shows how much of your money is liquid (i.e. Note: You should only update the cells that have a light green background because all other fields have formulas and will update automatically. To fill out this page of the spreadsheet, copy the previous month’s column, change the column header to the current month, and then populate the fields that have a green background with the latest data from Personal Capital. It’s the best tool I’ve found for managing my portfolio so I definitely recommend it. If you don’t have a Personal Capital account, you can sign up for free here. Luckily, this step is easy because Personal Capital* aggregates all of your accounts for you. The first tab in the spreadsheet is where you record your monthly account balances and calculate your net worth. If you haven’t already downloaded the spreadsheet, click here to download now! Net Worth Tab This page explains how to use my personal financial independence spreadsheet.
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