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Originally Posted by bizlady
So when 2010 comes, am I withdrawing $50,000 or $51750
I just am not seeing how the plan accounts for inflation.....
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You'll withdraw the inflation adjusted value of $50,000. So, it will be 50,000 * (1 + (CPI for 2009)). If CPI was 3.5%, than you would withdraw $51,750. You then need to update your annual living expenses in the planner to the inflation adjusted value.
Then, in 2011, you do the same thing, and so on.
Most retirement planners work using "real" values. That makes it much easier to visualize your expenses and balances.
Does this answer your question?
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