Anyone has a recommended tool to perform the following?
- Assume a portfolio with an initial value of 10K that has cost yield of 3%
- Project the potential dividend collected on a yearly basis (yes i know this is variable but a projection)
- Tool should account for growth in the portfolio components (is 3% a good assumption for growth?) as well as any increase in portfolio value (additional shares, etc)
I want to do this because I believe it would give me an idea of the dividends that I would get when I retire.
Please do correct me if my thoughts are wrong
Yes, I use EXCEL.
It does way more than you are asking, as I also track actual daily expenses with an inflation estimation to forecast expenses going into the future.
This is then set off against estimated income streams with residual income reinvested and forecasted yields based on current yields and an inflation estimation.
I have a “dead by date” and a couple of buttons which allow me to toggle between estimated expenses based on around 10 years of actual expenses, and a back calculation giving me the maximum I could spend daily/monthly/yearly to leave me with zero when the lid is finally screwed down.
The difference between the two is the “Margin of Error”.
I had thought of excel but I’m no whizz hahahaha
do you mind sharing a template?
The EXCEL workbook, which contains numerous sheets, I have put together and modified over several years. It can’t really be regarded as a template for general consumption, and would take some time to remove all the personal info.
I don’t mind throwing out ideas, but maybe you could regard it as an opportunity to become more fluent with EXCEL? The learning process is well worth the pain…
hmmm i’ll give it a try then
maybe i’ll post my template here and you can give some feedback?