Sunday, October 11, 2009

Getting your numbers in order...

So I talked about how we got our expenses into numbers into a spreadsheet now we have to get our revenue streams or income into numbers.  Once we have a better grip on what these numbers mean and what they tell us we will have the predictive means to determine an estimated retirement date.  Since I love spread sheets I started gathering up all my numbers... Roth accounts balances, Traditional IRa's, bank accounts, savings, life insurance cash values, retirement accounts, social security allotments, stocks, bonds, ETF's ... oh my...  So many numbers!

Gathering all your financial records into a spreadsheet can serve two purposes - it serves as a source to retirement planning and it also serves as a source for estate planning by having all your account numbers and passwords etc. in a single place.  Now that makes this file very valuable so I suggest you get one of the free encryption programs to protect this file on your computer.  I use one called Truecrypt.  Now you will be down to only one password that your significant other needs to know to access this very important file.

So after a month of careful scrutiny and calculations my spreadsheet was complete. Using my own spreadsheet and my own predictive future variables allowed to me to project when I would run out of money based upon my projected expenses.  This also answered the question of when we could retire - the answer:

February 2nd, 2012!

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