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inflation adjustments for home

Posted: Mon Jun 10, 2019 8:12 am
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?

Re: inflation adjustments for home

Posted: Mon Jun 10, 2019 8:24 am
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.