Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.

Get a Professional Answer

Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

100% Satisfaction Guarantee

Rate the answer you receive.

Ask The-PC-Guy Your Own Question

The-PC-Guy, Computer Manager

Category: Microsoft Office

Satisfied Customers: 1778

Experience: 20 years experience providing remote computer support

62934938

Type Your Microsoft Office Question Here...

The-PC-Guy is online now

Excel Formulas IFD1 r (working) = 10.00% G1 tax rate

Resolved Question:

Excel Formulas IF

D1 r (working) = 10.00%

G1 tax rate 1 = 15.00%

D2 r (retirement) = 5.00%

G2 tax bracket = $36,250.00

D3 i =(inflation) 3.00%

G3 tax rate 2 = 28.00%

D4 beginning salary = $40,000.00

G4 exemption = $10,000.00

D5 income growth rate = 5.00%

D6 first withdrawal =

G6 contribution limi $17,000.00

D7 savings rate = 10.00%

G7 employer match 6.00%

D8 current age = 25

D9 retirement age = 65

D10 life expectancy = 90

Total Taxes

Total Taxes Formula I have =IF(F21<$G$2,F21*$G$1,F21*$G$3 Taxes are to be calculated for income below $36250 at 15% and all income above $36250 taxed at 28%

Formula I have =IF(F15$D$9,0,L19*$D$1) The formula needs corrected to (10% D1)during working years but when goes to retirement years need to be (5% D2) when I go to add I get an error stating too many arguments

I need a formula to deflate the nominal withdrawal by the (inflation rate 3% D3) In other words, the real withdrawal in the first year would be the nominal withdrawal divided by (1+i). In the second year, it would be divided by (1+i)^2, etc.

I need a formula for Real consumption relates to nominal consumption in the exact same way that real withdrawals relate to nominal withdrawals.

For simplicity, assume that the following progressive tax structure will be in place for the entirety of Jane’s life. There is a personal exemption of $10,000. Taxable income from $0 to $36,250 is taxed at 15%, and taxable income above $36,250 is taxed at 28%.

In years prior to Jane’s retirement, her investment account will earn a 10% annual rate of return. When she retires, she will shift all of her retirement assets into saferinvestments earning 5% per year.

Assume that all withdrawals from the 401k will be taxed as ordinary income. Assuming that Jane only uses her 401k to save for her retirement and that she wants her withdrawals to be constant in real terms,

The columns I am having a problem with on the formulas is

Investment Income, Total Taxes, Withdrawal, Real Withdrawal, Consumption Real Consumption.

I have also upload another spread which has answers but no formulas and I have to provide the formulas File ID 898902

Yes the withdrawals only start once Column B reaches Value of D9

The first withdrawal is determined using goal seek to solve for the withdrawal that sets the account value to zero once we reach life expectancy. nominal withdrawal is not constant. The real withdrawal is. You need to deflate the nominal withdrawal by the inflation rate 3% D3 . In other words, the real withdrawal in the first year would be the nominal withdrawal divided by (1+i). In the second year, it would be divided by (1+i)^2, etc.

there are a couple of issues I am having getting it to match the answers, either because the answers are wrong, or some of your formulas are wrong.

Investment Income - this should now be correct

Total Taxes - your formula should be correct assuming there are only 2 tax brackets and the tax rates are correct. however they have different answers for some which leads me to believe you are missing tax brackets, have the wrong rates, or their answers are wrong,

Withdrawal - this should now be correct

Real Withdrawal - this should be correct, however they have 70 some odd thousand and I have no idea how they arrived at that figure.

Consumption- this should be correct based on your formula I think as the first few values match however i think that the difference in tax values is what is causing a diference in numbers as that is included as part of your formula -

Real Consumption - this should be the correct formula now, however if the numbers are off it is because of the difference in tax values as described above.

------------------

let me know if you need further help on this, or if you can determine how their numbers are so far off, or are their answers even correct?

Total Taxes - your formula should be correct assuming there are only 2 tax brackets and the tax rates are correct. however they have different answers for some which leads me to believe you are missing tax brackets, have the wrong rates, or their answers are wrong,

The taxes are a progressive tax structure in place for the entirety of life. There is a personal exemption of $10,000. Taxable income from $0 to $36,250 is taxed at 15%, and taxable income above $36,250 is taxed at 28%.

Tax should be charges 15% on the first $36,250 and 28% on the amount over $36250

Okay I am back the formulas is making all the numbers at the bottom of the spread sheet is incorrect. Once the client reaches life expectancy at 90 the remaining spread sheet has to be zero.

Life Expectancy is D10 The formula has to be the same all the way down and can not change in middle of spread sheet

I have highlighted in yellow.

File #211140 I have downloaded the file

Share this conversation

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.

JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.

Web sites like justanswer.com/legal ...leave nothing to chance.

Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.

Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.

I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

My Expert answered my question promptly and he resolved the issue totally. This is a great service. I am so glad I found it I will definitely use the service again if needed.One Happy CustomerNew York

My Expert answered my question promptly and he resolved the issue totally. This is a great service. I am so glad I found it I will definitely use the service again if needed.One Happy CustomerNew York

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.JustinKernersville, NC

Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. EstherWoodstock, NY

Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. RobinElkton, Maryland