How to calculate increase in expected retirement age using Microsoft Excel?

Question

I want to retire by the age of 55 with a nest egg of $1million. However, I have a shortfall of $500,000 and currently can only contribute $50 a month in a savings account, that grow at 4% per annum. The only way is to retire later. What would be the age which I eventually retire. How do I calculate that figure? What is the formula in Excel?

Answer 1

I put together a quick spreadsheet and looked at you putting $100/mo (1200 yr) away.  Couldn't make $50/mo work)

Making 8% yr over yr, without risking principal, you could have 1 million in 28 years.  On top of that, you could access your money without incurring taxes, so in 23 years you'd have the equivalent of $1 Million in say an IRA type of investment account that was taxable (assumes 33% taxable income)

And before anybody says there is no place one can put their money where capital is protected and has averaged gains of 8%, I say yes there is.  You don't know what you don't know.  

In fact this place has a year over year track record at 9.6%, but I prefer to be a little conservative.

Contact me if you want you'd like to get a slide presentation explaining this little known investment option.

Answer 2

No program is going to help you meet the retirement age goal of 55 and leave with a million nest egg. You have to be diligent, find another avenue of income to supplement what you are presently earning. $ 50 per month is not going to do it. Too many others in the same boat are buying lottery tickets with the $ 50 and looking for the " big hit " .So set more attainable goals, like retiring at 65 with a half a million in assets.