
6 Practical Spreadsheet Risk Modeling for Management
the value of a dollar in the future.) Our employee anticipates retiring at some
age between 60 and 65 and wants to see how long the retirement funds will
last under these assumptions and for each possible retirement age.
Let us further assume that our employee expects to get a return on retire-
ment funds that averages 3% above the expected ination rate and that after
retirement he or she anticipates needing $50,000 per year (again, in ination
adjusted or real dollars) to live comfortably. Do not worry about whether
these assumptions are correct at this point or even whether they are ...