inflation adjustments for home

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Joined: Mon Jun 10, 2019 8:06 am

inflation adjustments for home

Post by kgreen »

if one assumes that the user will sell their current home in the future, will the system "increase" the value of the home with inflation (assuming clicking COLA tab). for example:
the current value of the home is $500,000
plan to sell home at age 85
will the value of the home be increased to keep pace with inflation between now and age 85?

Posts: 576
Joined: Thu Feb 28, 2008 6:48 pm

Re: inflation adjustments for home

Post by jimr »

I think the best way to handle this would be to create a one-time "other income" cash inflow at age 85 of $500k and set the cola type to "tracks inflation."

In the detailed view table, this will show up as a $500k income item at age 85 (assuming no taxes). The detailed view table shows all amounts in today's value dollars which is why the amount won't be greater than $500k and might look like it's not adjusted for inflation. The idea is that if a cash flow shows up in the table as $500k, it'll have the same purchasing power as $500k does today, no matter what year it occurs in.

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