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

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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 Answer

  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 2021 Answer ✓
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    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.







Answers

  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 2021
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    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?






  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 2021 Answer ✓
    Options
    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.







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