Gradually diminishing planned expenses

Post questions about how to use the planner, user inputs, how the planner works, and comments and suggestions.
Post Reply
ngmoore
Posts: 5
Joined: Mon Nov 21, 2016 11:30 am

Gradually diminishing planned expenses

Post by ngmoore »

Love the program.

Here's my question: Despite assumptions that planned expenses will be stable, the detailed view shows a small reduction in the amount (about .005 of the total) each year. Can you help me understand this?

Thanks.

jimr
Posts: 634
Joined: Thu Feb 28, 2008 6:48 pm

Re: Gradually diminishing planned expenses

Post by jimr »

The most likely reason you'd see declining planned expenses in the detailed view table is if you created a 'No Cola' expense entry in the additional inputs table.

The amounts shown for all years of the detailed view are adjusted to today's value dollars. Any expense that increases with inflation will appear in the table as a constant amount from year to year, even though the nominal expense amount will likely increase each year due to inflation.

An expense that's set up as 'No Cola' will appear in the table as decreasing each year by the inflation rate.

ngmoore
Posts: 5
Joined: Mon Nov 21, 2016 11:30 am

Re: Gradually diminishing planned expenses

Post by ngmoore »

Ah - so a fixed mortgage payment will appear to cost less over time as inflation creeps in.
Thanks!

Post Reply

Who is online

Users browsing this forum: Bing [Bot] and 5 guests