Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Pension inflation checkbox
Old 03-04-2018, 02:12 PM   #1
Confused about dryer sheets
 
Join Date: Mar 2018
Posts: 3
Pension inflation checkbox

So I did two runs. One with and one without inflation checked for pension. I then generated the single year spreadsheet and noticed that the pension values were identical in both runs and both appeared to have had inflation applied. What am I doing wrong?

Thanks!
DTM
__________________

DMMDTM is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-04-2018, 03:10 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,036
Not sure about the spreadsheets, but if you run the numbers with and without inflation, the minimum/maximum results and average remaining portfolio results are clearly different on the FIRECALC website results.

BTW, welcome to the site.
__________________

__________________
TGIM
Dtail is offline   Reply With Quote
Old 03-04-2018, 03:57 PM   #3
Confused about dryer sheets
 
Join Date: Mar 2018
Posts: 3
Definitely do see the difference. I'm not a math wiz, so can you help me understand why when it shows a change, the values with the inflation box NOT checked have the lower value lower and the higher value higher (so a broader range when the pension isn't inflation adjusted)? I would have expected to see greater variance when the pension had inflation value (more to lose/gain if you will).

Greatly appreciate the insight and glad to have stumbled into this site. Lots of great information!

D.
DMMDTM is offline   Reply With Quote
Old 03-04-2018, 05:47 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,036
Quote:
Originally Posted by DMMDTM View Post
Definitely do see the difference. I'm not a math wiz, so can you help me understand why when it shows a change, the values with the inflation box NOT checked have the lower value lower and the higher value higher (so a broader range when the pension isn't inflation adjusted)? I would have expected to see greater variance when the pension had inflation value (more to lose/gain if you will).

Greatly appreciate the insight and glad to have stumbled into this site. Lots of great information!

D.
While I use Firecalc quite a bit, I will defer to my seasoned Firecalc usage members to give a mathematical/model type response, as I don't currently have this insight.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 03-04-2018, 06:13 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 21,496
I haven't looked at those spreadsheet outputs in a long time, but I think that maybe what you are seeing is, all the other numbers are inflation adjusted. So if a pension is inflation adjusted, it just sort of rides the wave with the other numbers.

If it's not inflation adjusted it gets changed by inflation while the others stay constant with respect to inflation.

Could that explain what you see?


-ERD50
ERD50 is online now   Reply With Quote
Old 03-05-2018, 07:37 AM   #6
Confused about dryer sheets
 
Join Date: Mar 2018
Posts: 3
Fundamentally, the "non-inflation" is showing inflated values but using non-inflated in the calculations. Makes the spreadsheet tough to use as a validation tool but the graphics and summary page appear correct. I'm just a "trust but verify" type of guy. Appreciate the inputs!

D.
__________________

DMMDTM is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Inflation adjusted checkbox seemingly ingnored Smitty700 FIRECalc support 3 04-17-2015 10:21 AM
Inflation Protected Assets vs. Inflation arebelspy FIRECalc support 5 05-17-2011 11:19 AM
Implied inflation rate in an inflation adjusted SPIA cashflo2u2 FIRE and Money 6 04-30-2008 07:24 PM
Inflation or No Inflation? Donner FIRE and Money 16 01-19-2005 12:58 PM

» Quick Links

 
All times are GMT -6. The time now is 08:42 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.