The spreadsheet above serves two purposes.

a. Help you calculate your monthly and annual expenses in order to determine the monthly savings.

b. Work out how much you will get in your RESERVES “O”, INVESTMENT “O” and your monthly dividend if you continue with the same amount of monthly savings for your preferred number of years of accumulation.

If you are from a country which provides pension, social security or provident funds after your retirement, this monthly dividend from INVESTMENT “O” will supplement that and can improve your quality of living.

Play around with the spreadsheet to get a sense of how increasing monthly savings or the period of accumulation can impact your monthly dividend at retirement. Depending on which country you are from, please do not get too aggressive with the expected dividend yield for your income portfolio. If you want a higher dividend yield, it will equate to taking more risks. For eg, buying high yield bond funds will give you a higher yield than investment grade bond funds. However in a crisis, a high yield bond fund will decrease more in value than an investment grade bond fund. You can buy both and apportion them appropriately to balance out the rewards and the risks.

TRI-O RETIREMENT PLAN is a simple way to help you get started on your retirement planning. Learn the FUNDAMENTALS and HOW TO GET STARTED. There is also a spreadsheet to help you CALCULATE your monthly savings and your project monthly income at retirement. You can check out our BLOGS on topics pertaining to retirement planning. Feel free to CONTACT US if you have any questions or comments.