Expense Starts in Future with Value Based on Totay's Value Subject to Inflation

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howardofocal
Posts: 2
Joined: Sat Dec 19, 2015 10:19 pm

Expense Starts in Future with Value Based on Totay's Value Subject to Inflation

Post by howardofocal »

This is such a simple question but I just can't figure it out.

I want to plan for my wife's Medicare expenses in the future. I know what Medicare costs today. Her coverage starts in 5 years. Can the system calculate what her starting premium will be in 5 years without taking any deductions until then.
jimr
Posts: 821
Joined: Thu Feb 28, 2008 6:48 pm

Re: Expense Starts in Future with Value Based on Totay's Value Subject to Inflation

Post by jimr »

All planner inputs are specified in today's value dollars, regardless of what year they occur.

So as long as the expense is expected to increase by the inflation rate, I think you can use the additional inputs window to enter a cash flow in the amount medicare costs today, but with the cash flow starting in 5 years, and using a cola type of 'Track Inflation'.
howardofocal
Posts: 2
Joined: Sat Dec 19, 2015 10:19 pm

Re: Expense Starts in Future with Value Based on Totay's Value Subject to Inflation

Post by howardofocal »

Thanks. I thought that is how it works.
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