The Retirement Investment and Income Simulation Spreadsheets

Tom O'Haver, University of Maryland

These Excel 5.0 spreadsheet simulations were developed for instructional purposes, to demonstrate in a graphic and interactive manner the potential benifits of long-term investing. They are not intended as tools for detailed personal financial planning.

The Investment Simulation Spreadsheet is a simulation of saving and investing for retirement. It shows how much you can accumulate in a tax-deferred retirement account (e.g. an IRA or 401k account) over a 35-year period by saving a certain amount each year and investing it in a combination of fixed-interest or variable (equity) instruments.

The Income Simulation Spreadsheet shows how much income you can withdraw from a retirement account (e.g. an IRA or 401k account) that is invested it in a combination of fixed-interest or variable (equity) instruments.

Both of the simulations use a randon-number generator to simulate the fluctuation (volatility) in the investment returns of equities (stocks and stock mutual funds).


(c) 1997, 1998, T. C. O'Haver, The University of Maryland at College Park
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