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FIRECALC results in inflated $ or real $?
Old 03-26-2013, 04:19 PM   #1
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FIRECALC results in inflated $ or real $?

When I look at the results of FIRECALC, can I assume that the results are in real dollars (inflation taken into account) or nomial dollars? You see that if we assume inflation is 3.5% and with a long time horizon that will make a difference in the results.
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Old 03-26-2013, 04:28 PM   #2
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Does the first sentence on the FIRECALC results page answer your question?
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Old 03-26-2013, 04:35 PM   #3
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Quote:
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Does the first sentence on the FIRECALC results page answer your question?
Yes. I see "Your spending in every year after the first year will be adjusted for inflation, so the spending power is preserved." But there are two ways they can accomplish this. Everything can be in nomimal dollars but they merely increase annual spend by inflation. OR they can do everything in real dollars and not nomial dollars. Both achieve what they say in the first sentence. I am interested in which one they did.
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Old 03-26-2013, 04:55 PM   #4
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IME the numbers and charts on the results page are not nominal dollars, they are inflation adjusted. Actual/real/nominal numbers after inflation would be much larger in the case of maximum final portfolio value for example. How's that?
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estate leftover-is it inflation adjusted $?
Old 05-14-2013, 07:03 PM   #5
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estate leftover-is it inflation adjusted $?

Quote:
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Does the first sentence on the FIRECALC results page answer your question?
What about the fact that firecal has an option to set an amount that the portfolio should never fall below (ie a minimum target estate to be left for our (yep wonderful) 2 kids? Is the amount you set in Firecal always NPV, so if I put say $1M as the figure, that the min amount in the portfolio is calculated to be always based on the then inflation adjusted $1M, as a function of the scenario and the time duration of the (say) 30+ year planning horizon period. Obviously $1M today (which I wanna leave them) would be MUCH less valuable if it was today's dollars left them 30 years hence. So is the min portfolio left in in inflation adjusted $?
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estate leftover-is it inflation adjusted $?
Old 05-14-2013, 07:22 PM   #6
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estate leftover-is it inflation adjusted $?

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Originally Posted by Midpack View Post
Does the first sentence on the FIRECALC results page answer your question?
What about the fact that firecal has an option to set an amount that the portfolio should never fall below (ie a minimum target estate to be left for our (yep wonderful) 2 kids? Is the amount you set in Firecal always NPV, so if I put say $1M as the figure, that the min amount in the portfolio is calculated to be always based on the then inflation adjusted $1M, as a function of the scenario and the time duration of the (say) 30+ year planning horizon period. Obviously $1M today (which I wanna leave them) would be MUCH less valuable if it was today's dollars left them 30 years hence. So is the min portfolio left in in inflation adjusted $?
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