Create a Google Sheet to help visualize and manage the “Time Buckets” concept from “Die With Zero”

Creating a Google Sheet to help visualize and manage the "Time Buckets" concept from "Die With Zero" involves a few steps. This guide will help you set up a Google Sheet to calculate interest on investments, draw down principal sums, and ultimately aim to die with zero. Here’s a step-by-step process:

Step 1: Set Up Your Google Sheet

1. Open Google Sheets:
   • Go to Google Sheets.
   • Click on the "+" button to create a new blank spreadsheet.
2. Rename Your Sheet:
   • Click on the default name "Untitled spreadsheet" at the top and rename it to something like "Time Buckets Management".

Step 2: Calculate Likely Death Date

To estimate your likely death date, you can use various online calculators that consider your health, lifestyle, and family history. Here are some recommended options:

• Blue Zones Vitality Compass
  The Blue Zones Vitality Compass offers a detailed life expectancy calculator based on research from the Blue Zones, areas where people live significantly longer. Blue Zones Vitality Compass
• Living to 100 Life Expectancy Calculator
  Developed by Dr. Thomas Perls, this calculator uses a detailed questionnaire to estimate your lifespan based on health habits, family history, and other factors. Living to 100
• Project Big Life
  This calculator provides an estimate of your life expectancy based on diet, exercise, smoking, and other lifestyle choices. It also offers advice on how to improve your health. Project Big Life
• Longevity Game by Northwestern Mutual
  This interactive tool uses your current age, gender, health habits, and lifestyle choices to estimate how long you might live. It's a fun and engaging way to think about longevity. Longevity Game
• John Hancock Life Expectancy Calculator
  John Hancock's calculator asks for information about your health, habits, and family history to provide a life expectancy estimate. John Hancock Life Expectancy Calculator

Once you've used one or more of these tools to estimate your likely death date, enter the result in your Google Sheet:

1. In cell A1, type "Likely Death Date".
2. In cell B1, enter the estimated date (e.g., 2070).

Now enter your total investments in savings as a single number, enter the result in your Google Sheet:

1. In cell A2, type "Investment Principal".
2. In cell B2, enter the value.

By using these calculators, you can get a more informed estimate of your lifespan, which will help you plan your time buckets and financial drawdowns more accurately.

Step 3: Create Time Buckets

1. Set Up Bucket Intervals:
   • In column A, starting from cell A5 (to make space for the main table), list the bucket intervals (e.g., 2024-2030, 2031-2040, 2041-2050, etc.).
   • Each bucket should represent a different period of your life.
2. Label Columns for Each Bucket:
   • In cell B4, type "Start Year".
   • In cell C4, type "End Year".
   • In cell D4, type "Years in Bucket".
   • In cell E4, type "Investment Principal".
   • In cell F4, type "Annual Interest Rate".
   • In cell G4, type "Annual Withdrawal".
   • In cell H4, type "End Principal".
3. Fill Bucket Years:
   • Enter the start and end years for each bucket in columns B and C respectively.
   • Calculate the number of years in each bucket in column D (e.g., =C4-B4+1).

Step 4: Input Investment Data

1. Enter Principal and Interest Rates:
   • In cell E5, use this code =B2.
   • In column F, input your expected annual interest rate (as a percentage).

Step 5: Calculate Annual Withdrawals

1. Calculate Withdrawals:
   • In column G, calculate the annual amount you plan to withdraw. This can be done based on your planned expenses or as a fixed percentage of your principal.
   • For a simple model, assume a fixed annual withdrawal: =E5/D5.
2. Calculate End Principal:
   • In column H, calculate the end principal for each bucket using the formula:
     =E5*(1+F5)^D5 - G5*(((1+F5/100)^D5 - 1)/(F5/100))
   • This formula accounts for compound interest and annual withdrawals.

Step 6: Draw Down Principal

1. Cumulative Withdrawals:
   • Track cumulative withdrawals over time. Add a column "Cumulative Withdrawals" to see the total amount withdrawn by the end of each bucket.
2. Ensure Zero Balance at Death:
   • Adjust annual withdrawals in column G to ensure that the final principal sum in the last bucket approaches zero. This might require iterative adjustments.

Step 7: Visualization and Review

1. Create Charts:
   • Highlight the data in columns A, E, G, and H.
   • Go to Insert > Chart to create a visual representation of your investments and withdrawals over time.
2. Review and Adjust:
   • Regularly review your plan and adjust as needed based on changes in your life expectancy, investment returns, and spending needs.

Step 8: Share and Collaborate

1. Share the Sheet:
   • Click on the "Share" button in the top right corner.
   • Enter the email addresses of the people you want to share the sheet with.
   • Choose their permissions (Viewer, Commenter, Editor).
   • Click "Send".

Example Setup

This example illustrates how to set up and use the sheet to ensure that you are able to draw down your investments in a planned and strategic manner, aiming to end up with zero at the end of your life.

By following these steps, you can create a detailed and actionable plan that aligns with the "Die With Zero" philosophy, ensuring you maximize your life experiences and financial resources efficiently.