Welcome to Monte Carlo. Is retirement a gamble?

Well, yes. Spending during retirement, or saving for retirement (or anything else, for that matter) is fraught with uncertainty. In my last post I featured a spreadsheet that randomly shows you possible year-by-year outcomes of a spending plan. If you invest $2 million at 4% with a standard deviation of 2.5%, it seems you can spend … Continue reading Welcome to Monte Carlo. Is retirement a gamble?

How much faster will I pay off my mortgage if I add $100 a month?

Can you believe that you can answer this question using nothing but simple arithmetic in Excel? Addition, subtraction, multiplication. That’s all. No functions, and Excel writes the formulas for you. Yes, I know, you think you have to do some complicated formulas that nobody knows. Seriously, here is all you need to know:The interest payment is … Continue reading How much faster will I pay off my mortgage if I add $100 a month?

What nine things should everyone know how to do with a spreadsheet?

Macworld recently ran an article, “Nine things everyone should know how to do with a spreadsheet,” by Rob Griffiths. Here’s the list: Format numbers Merge cells Use functions Distinguish between relative and absolute references Name cell references Extract data from ranges Perform logical tests Mix text and formula results Use conditional formatting I thought about my … Continue reading What nine things should everyone know how to do with a spreadsheet?