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Firecalc Inflation question
Old 07-05-2011, 11:28 AM   #1
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Firecalc Inflation question

This may be a silly question, but I cant seem to find the answer.

If I plug in $100,000 as my spending on a portfolio of $1,000,000 and a retirement year of 2030, with a duration of 30 years, does Firecalc assume the $100,000 spending is in TODAYS value, or does it index it to inflation and assume a higher value in 2030?

Does this make sense? In other words, is my spending in todays dollars in 2030, or would I need to plug in $175,000 annual spending to project 3% inflation of my $100,000?


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Old 07-05-2011, 11:48 AM   #2
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FIRECalc uses inflated future dollars in your calculation example. Note this on the "Spending Models" Tab:

Note: FIRECalc adjusts just about everything for inflation. Any exceptions will be noted prominently.

Use the following inflation assumption: PPI, CPI, or % for inflation adjustments to the historical data.
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