Why is "Annual Increase" for investments blank on lifetime planner?

My lifetime planner includes all my current investments (e.g. 401K). Plus, I indicated a Rate of Return of 6%. However, when looking at my lifetime planner assumptions, all of the investments, even those for which I indicated I would make additional contributions, have a blank for "Annual Increase".

Am I missing something? Is Quicken applying the rate of return to all my investments when presenting the plan results (e.g. the graph at the top of the planner)?

Thanks for your help.

Best Answers

  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 17 Accepted Answer
    Yes, rate of return gets applied in aggregate.   Although there are some options you have for selecting RoR based on pre/post retirement date and taxable/tax deferred investment account type.  

    In terms of annual increase, I assume you are looking at this view in LTP? Image 1.    If so....there are two options you choose when you setup an account contribution (Image 2).  Note that annual increase is not RoR and is applied only in reference to a specific investment account.

    1.  To base the contribution on a percent of salary, which is inflated by your settings in the Salary assumption.   In Salary, you make an assumption as to rate of increase.     In this case, annual contribution increase is shown as a blank (image 3).   Yes, perhaps there should be some indication here on how the Annual Increase setting is determined.

    2.   To base the contribution on a annual $ figure, which the annual increase is determined by your setting in that contributions dialog.  In this case the annual increase is shown as a percentage (of the contribution amount).  Back to Image 1.







  • fganter
    fganter Member ✭✭
    Accepted Answer
    It is not "contributions" I am questioning.

    It's the fact that investments (e.g. a mutual fund for which I no longer add contributions, yet yields 10% annually) does not show anything for "Annual Increase" - not even the rate of return I specified in the planner.

    It appears this simply comes down to the UI being confusing.

    My primary interest is making sure the rate of return is being applied to all my investments, which you and my cursory troubleshooting suggest is the case.

    Thanks for the help @Scooterlam

Answers

  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 17
    Rate of Return and your Contributions are two separate settings in Quicken Lifetime Planner.

    Yes, the rate of return setting gets applied to the investment account balances for those accounts you've included in the LTP plan.

    In terms of your contributions to any particular investment account (see image):  In section 1, select the account getting the contributions and in section 2, click New to define the contribution for that account.

    After doing so, you are still getting a blank box (highlighted) in section 2?






  • fganter
    fganter Member ✭✭
    Yeah, I know how to add the contributions. That's already been done.

    I'm questioning why "Annual Increase" shows blank in the planner. There is obviously a place for it. Perhaps, it's just bad user interface design (i.e. it should be removed), as the attached suggests rate of return is not applied for each investment, but is done at the aggregate.
  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 17 Accepted Answer
    Yes, rate of return gets applied in aggregate.   Although there are some options you have for selecting RoR based on pre/post retirement date and taxable/tax deferred investment account type.  

    In terms of annual increase, I assume you are looking at this view in LTP? Image 1.    If so....there are two options you choose when you setup an account contribution (Image 2).  Note that annual increase is not RoR and is applied only in reference to a specific investment account.

    1.  To base the contribution on a percent of salary, which is inflated by your settings in the Salary assumption.   In Salary, you make an assumption as to rate of increase.     In this case, annual contribution increase is shown as a blank (image 3).   Yes, perhaps there should be some indication here on how the Annual Increase setting is determined.

    2.   To base the contribution on a annual $ figure, which the annual increase is determined by your setting in that contributions dialog.  In this case the annual increase is shown as a percentage (of the contribution amount).  Back to Image 1.







  • fganter
    fganter Member ✭✭
    Accepted Answer
    It is not "contributions" I am questioning.

    It's the fact that investments (e.g. a mutual fund for which I no longer add contributions, yet yields 10% annually) does not show anything for "Annual Increase" - not even the rate of return I specified in the planner.

    It appears this simply comes down to the UI being confusing.

    My primary interest is making sure the rate of return is being applied to all my investments, which you and my cursory troubleshooting suggest is the case.

    Thanks for the help @Scooterlam
  • fganter
    fganter Member ✭✭
    Probably worth noting that to determine my rate of return for the planner I ran the Investment Performance report and changed date range to "Include all dates" and subtotal to "Year". A "Total IRR" bar shows up in the graph, which is what I'm using, unless someone suggests otherwise.
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