Monday, November 10, 2014

Cash Flow Forecast

8:10 PM



Question:

In the Cash Flow Forecast Detailed Data Table, there is a column of data called "Retirement Objective Net". From what I can see it includes the Post retirement expenses that I setup along with
special expenses according to the parameters that I setup in the "Retirement Income Target" in the Forecast page.

However I can't seem to reconcile the data in that column against the budget...it is always higher. Can you tell me what data is included in that Retirement objective Net column

Answer:

The expenses you entered are in "today's dollars". So if it's payable in. say, 10 years, the annual expenses are increased by the rate of inflation applicable during that period.

This is to ensure that your assets can pay for the expenses when they are incurred in the future. Look in the Help file, under Forecast Menu | Retirement Income Target |  Adjustments to Retirement Income.

There is more information and an example about the impact of inflation in the Help section.


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