Steps Goal Planner (enable macros).

When you enter data in few cells the file will appear unresponsive as it is
busy calculating the rate of return required for accomplishing the goal via a macro and Excel's 'goal seek' fu
1a Name of the goal (for reference)
1b Years to goal 12 Identify the goal and its time-frame
1c Present cost 4,500,000 Find out as accurately as possible how mu
1d Amt invested so far 2,500,000
1e RoI of current invest. 10.00%
1f Future value of curr. Inv. 7,846,071

2 Expected inflation 10.0% Assume a reasonable inflation rate (not the h

3 Future Cost or Goal Target 14,122,928 determine how much the goal would cost a

4 How much can you invest per month 28,000 Taking into account: expenses, loans, inve
5a Annual inc. in monthly invest. %
5b If you have loans or other commitments at present and can contribute more towards this goal after a few y
5c Expected additional mon. invest. years from now this increase is likely to oc
If not applicable ensure this is 'zero'
5d When investment are made 0 Choose '0' if SIP occurs at month beginnin
** 1st 10 days can be taken as 'month be
Press to determine the interest required
If the SIP occurs in the middle 10 days then
to achieve your financial goals
6 Average rate of interest required 7.73% This is an output. It is quite
If it doesn't change then sa

7 Post-tax return from fixed income 6.0% If you have no taxable fixed income, use a
If you have some taxable fixed income, use proportionately lower. Pessimism is key to a realistic plan

8a Allocation to equity 60.00% Equity 50-70% for goals 15 or more

8b Allocation to debt (output) 40.00% Allocation 40-50% for goals about 10
20-30% for goals 7 years or so

9 Expected return from equity 8.89% Anything above 12% is imp

If equity return is too small then for reasonable inflation rate if you don't have the exper
you can afford to decrease your montly invesment 12% is okay only for period
If its too high then you will have to increase your monthly 9-10% for periods less than
investment or decrease your goal amount

10 If equity return is anything more than 12%, then irrespective of duration and perhaps expertise, it
best to increase investment in one of the following ways:
Initial monthly investment could be increased and/or
% by which investment will increase annually (from year 2) can be increased and/or
Consider additional investment a few years down the line.
11 If equity returns are unreasonable depsite increase investment as much as possible
consider postponent
12 if postponement is not possible the estimate the shortfall
12a Expected return from equity 10.0% Statuatory warning: garbage in, garbage
12b Expected corpus 14375646.35 All inputs except equity returns are the sa
12c Deviation from expected corpus 1.79% Shortfall only if negative
Expected corpus falls short by 102%
 Fill only green cells
ek' function

ow much it will cost today

ot the historical average). The higher the safer.

cost at the time of need

s, investment towards retirement (always the no. 1 goal).

few years then

to occur must be less than 'years to goal'

ginning and '1' if SIP occurs at month end**

th beginning' and last 10 days as 'month end' approx.
s then it does not matter which option you choose!

uite natural for it to flicker if cell entries are chaned

then save your work and reopen the file and try again

use about 7-8%

more years away;

t 10 years away;
rs or so away and 0-10% for lower durations

is impractical irrespective of duration

the expertise to manage equity
riods well above 10 years
ss than 10 years is what I would use.

rtise, it is
garbage out!
the same. You can change them to see the effect on expected corpus
This is an example of a typical goal planner where the average rate of return is an input.
Goal Planner (annual compounding)
Years to goal 3 Fill only green cells
Present cost 43,692
inflation 0.0%
Net rate of return 10.00%
Futire Cost 43,692
Amt invested so far 0
RoI of current invest. 0.00%
Future value of curr. Inv. 0
Annual inc. in monthly invest. % 0.00%
When investment are made 1 Choose '0' if SIP occurs at month beginning an
initial mon. invest. reqd. 1,000
postpone invest. (years) 0
if postponed, pm invest. 1,000
** 1st 10 days can be taken as 'month beginning' and last 10 days as 'month end' approximately.
If the SIP occurs in the middle 10 days then it does not matter which option you choose!
g and '1' if SIP occurs at month end**

ely.