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Help - Don't Understand How Inflation Works?

Posted: Thu May 10, 2018 6:22 pm
by jonboring
I want to set up my plan so my expenses are subject to 2% per year inflation but my social security income only gets a 1% COLA. I entered my expenses and SS on the "additional inputs". For the SS, I selected "tracked then fixed" at 1%. On the main screen, I put in 2% for average inflation.

Did I do it right? If so, it is a little weird because if I change the inflation to 0% the probability goes down and if I increase inflation, the probability goes up. It should be the reversed.

Re: Help - Don't Understand How Inflation Works?

Posted: Thu May 10, 2018 6:36 pm
by jonboring
I may have figure it out. For my expenses on the additional inputs screen, I did not indicate "track inflation." I left that blank. So my guess is, the expenses were not being adjusted each year for inflation. I had my SS configured as "tracked then fixed" at 1%. So, as I increased inflation, SS was getting increased but expenses were staying the same.

I changed it so all the expenses are "tracking inflation" and the probability now goes down as inflation increases.