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Author: Chipsboss Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757894  
Subject: Re: excel spreadsheet Date: 2/24/2000 3:40 PM
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I also have an Excel spreadsheet where I do my calculations. Mine are based on the inflated dollars of future years. Each year of my 35 year retirement plan is represented by a row. I have a column for each of these:

Dividends in taxable accounts, including mutual funds dividends that are capital gains

Corporate pension (not indexed for inflation)

IRA withdrawals

Social security (indexed for inflation)

Sales for taxable accounts (just enough to raise any additional money needed to cover my spending budget and income taxes)

Total income

Personal exemption amount

Itemized deductions

The basis in my taxable account, computed based on sales or purchases, and not indexed for inflation, since capital gains taxes are computed based on the fantasy that inflation does not occur

The amount of tax-free return of capital resulting from sales in my taxable account, assuming sales at average purchase price

Realized capital gains

Maximum income for 15% income tax rate

Maximum income for 28% income tax rate

Maximum income for 31% income tax rate

Maximum income for 36% income tax rate

Then, five columns of which only one has an entry other than zero, that shows an estimate of the income taxes for that year. The column that has a non-zero entry corresponds to my marginal income tax rate for that year on income other than capital gains. The fifth column corresponds to the 39.6% marginal tax rate.

Finally, the estimated income tax for that year, which is just the sum of the tax on income other than capital gains and an assumed tax rate of 20% on the capital gains realized that year.

Then, even after "finally" and because I'm curious, two columns to show the percentage of my income going to federal income tax and the percentage of my assets going to that tax.

I also have some related graphs to show

1. the allocation of my income and unrealized capital gains to three accounts: spending, income taxes, and "saving" which is actually repair of the damage that inflation does to the purchasing power of the retirement assets. A pie chart with three sectors labeled with percentages, totalled over the 35 years, and a bar chart that shows the percentages for each year separately.

2. a chart that shows income taxes, both in current dollars and inflation adjusted

Chips, who loves to crunch the numbers and hates to pay the taxes
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