Updated on 4 Nov 2019:

1. The calculator now allows one to calculates how long your investments and savings can last you if you do not have any income.

Once savings balance hits 0 due to monthly expenses, quarterly living expenses will be deducted from the quarterly dividend payouts.

In the case dividend payouts is insufficient to cover quarterly living expenses, investment balance will be drawn down too.

2. Lowest amount bank balance can go too is 0.


Click me to access the LlamaFinance Net Worth Calculator

Please click on the Llama picture above to access the LlamaFinance networth calculator. This is a step by step guide to use this calculator to calculate your net worth for the next 30 years.

There are many financial advisors out there who use the power of compounding to blow up figures, and to induce you to purchase the policies or plans with them.

Not saying this is wrong, but, compounding does not always occur with the 6-8% returns they promise you. $1 can be $5.4 compounded over 30 years with a 6% compound rate. $1 is only $2.3 is compounded with 3% over the same period.

There are already many bloggers who shared their own calculators, however, I hoped to work on 2 weaknesses i found.

Why did Mr Llama build this tool?

First, being that they were not personalised. LlamaFinance net worth calculator allows you to input current amount of investments and savings in bank.

Second, not all calculators are usable depending on your stage of life. The calculator I have created is usable regardless of whether you are a student, or a working adult. You will have to update the information accordingly, and work on the number of years to come.

Lastly, it is to encourage Mrs Llama to be exposed to financial knowledge. I hope by letting her toy with this calculator, it sparks her interest in managing her finances.

This tool is relative to your stage of life

For instance, if you are 40 years old this year, you could probably work out a 20 year plan to determine if you have saved enough for retirement. Upon reaching 50, you could again adjust figures to work out the financial plan for the next 10 years.

From the picture below, the years are built numerically, and is relative to your stage of life, and when you start to invest.

It captures both investment and bank interest returns

This tools allows you to capture both your bank balance and investment balances. For investments, you can adjust your dividend returns freely, and dividend growth rate. It is built for SG based investments, hence, the growth rates are capped at a reasonable rate.

Interest rates are best assumed to be a SG local salary crediting account. You can select from ranges from 0.05% to 5%.

One glance to know your networth

At the Results sheet, you can view your investment and bank balance at 10, 20 and 30 year marks. You can know if your yearly dividends can cover 12 months worth of your current expense too.

The orange cell shows 12 months of current expenses. If lower than the yearly dividends you will get, you have technically attained financial independence.

Just remember to account for inflation for your future expenses. (if you wish to)

Using the Calculator

You will only require the calculator sheet. Data sheet is not required at all. To start things off, feel free to make a copy via the steps in the picture below.

The few fields that can be easily filled

Before you begin, bear in mind that you are only required to fill in the grey fields.

Current investment holdings represent the current amount of shares or funds you have.

Current savings in bank is the amount you currently have in your salary crediting account.

Salary will be your monthly salary. Please take the amount after CPF deduction of 20%.

Other income represents the amount you earn from other sources like part-time gigs, and bonuses. Amount to be allocated monthly. Eg, a $12,000 bonus will be entered as $1,000 after dividing it by 12 months.

Include all the various expenses. For instance, if you pay $4,800 of premiums per year, please write it as $400 after dividing it by 12 months.

Other expenses is for any other expenses that you incur. For instance, you paid $4,800 for dental treatment. You can key in $400 as we require the amount to be on a monthly basis.

You can include dating expenses under this category too :)

% of salary for investments after deducting monthly expenses: This is the amount leftover from your salary after paying for the monthly expenses. So, how much would you like to invest this amount?

Deciding to invest 60% of the leftovers, will allow only 40% of the remaining sum to be saved in the bank account.

Investment returns: This depends on your investment vehicle. REITs can give about 5%. Shares give less dividends, around 3-4%. Whereas certain unit trusts give up to 7%.

Dividend growth: I personally would downplay this and use 0.25% as a safe gauge. Please feel free to customise this field according to the expected dividend growth rate.

For instance, Keppel DC reit has a dividend growth rate of more than 10%, while other reits grow at only 2-3%.

Bank interest rate: This is simply the amount of interest you get from the bank per year. Bank interests work in a monthly compounding basis. This calculator works on a quarterly compounding basis.

Hence, this calculator is an extremely conservative estimate of your networth.

What can you gather from the LlamaFinance Net worth tool

Year is the number of years you are into this financial plan.

Target amount is the amount that you invest per quarter, including any dividends that can be reinvested.

Cumulative amount invested is the amount that you have invested into the markers so far.

Target yield is adjusted to be quarterly (as most Reits pay out quarterly). 

Similarly, for Dividend growth rate.

Dividend received is the amount of dividends you will receive per quarter.

Bank interest rate is adjusted quarterly too, and Bank balance is assumed to be topped up once per quarter. Hence, the networth estimate is definitely very conservative, and will be higher in the real world.

What is this tool best for?

This tool is best for investors who invest in REITS, or stable dividend aristocrats like Comfort delgro. It is best for people who require adjustments to their expenses, like newly weds. You can adjust your financial plan easily on this tool.

I understand that this tool does not take into account capital gains or losses. However, it does not take into account Salary increments, nor significant dividend growth too. 

The aim is to give yourself a good conservative sense of your networth, 10, 20 and 30 years from now according to your plan. And, this is disregarding potential pay increments and promotions.

This is to encourage safe and stable investing as a lifestyle, and discourage risky investments.

Hence, you definitely can be more than what you see on this tool. Go ahead and try it out!

~Mr Llama


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