Flexible Retirement Planner Support Forum

I'm trying to help my brother with FRP. God help me for having shown him this incredible program!

He has a vacation home that he plans to sell in 2036. It is currently valued at $500k and we believe it will appreciate by 2% each year. Just to be 100% certain, I thought it was best to post a question about adding this vacation home to his FRP model.

We have the home entered in the Additional Inputs window as...
Misc Income,
at $500k,
non taxable,
and a COLA of 2%,
with a start year of age 70, (he is age 55 now)
an end year of 70.

Does that seem like the right way to do this?

That sounds about right, but did you check the detailed view tab to see what the cash flow looks like there for the year 2036?

You should see a one-time increase in the income column by the amount that the $500k is worth in 2036 (shown in 2021 dollars).

So for example, if inflation is set to 2% and you used a fixed cola of 2% on the cash flow, the "after tax income" amount shown in the table should jump by $500k in 2036. If you used a higher inflation rate, the amount will jump by less than $500k and if you used an inflation rate below 2%, it'll jump by more than $500k.

Can you tell what's happening in year 2036 in the detailed view table? You might need to select the "show more detail" radio button on the top right of the window (you can also right-click on any column header and select "show all columns" to show even more details).

Jim

Hey Jim,

Yup. Just checked it by messing with inflation and yeah... we get $500k if inflation is the same as the COLA on the house.

Thank you for the support and for this incredible program.

Mike

You're certainly welcome and I'm glad to hear that you're still finding the program useful.

Jim