Why doesn't Lifetime Planner Inflation rate increase Living Expenses each year?

MJB

I set Inflation rate at 3.5%, and Living Expense at $120,273. When I look at all future years, Living Expense remains the same $120,273. I have also entered Special Expenses totaling $65,250. The future special expenses also remain the same $65,250 (no inflation increase)
I do see two (2) inflation entries in each year, 1 under Portfolio Value/Taxable and another under Tax Deferred, but not sure how this is calculated.
Help!
MJB

MJB

Hi Chris_QPW,
Thanks for the answer! Spot on about "showing amounts in future value".

Not sure I understand your comment about the "Second Issue". Are you referring to my statement about "inflation" amounts in the Portfolio Value? I would greatly appreciate any insight into how these calculations are derived.
Thanks,
MJB

Chris_QPW

Select the gear icon in the Planning results to select "Show amounts in future value" to see the affects of inflation on your values.

On the second issue, I consider this one a bug/shortcoming of the Lifetime planner.  Future expenses that you enter aren't inflation adjusted.  You are entering the amount that you would spend in that year.  If you put in say $40,000 for 2030, then that is the exact amount Quicken is going to use in 2030 even though inflation will mean that you need more than that amount to have the same buying power.

MJB

Hi Chris_QPW,
Thanks for the answer! Spot on about "showing amounts in future value".

Not sure I understand your comment about the "Second Issue". Are you referring to my statement about "inflation" amounts in the Portfolio Value? I would greatly appreciate any insight into how these calculations are derived.
Thanks,
MJB

Chris_QPW

@MJB no, I wasn’t talking about the portfolio values, I was talking about the “future special expenses”.  One would think those entries would be adjusted for inflation, but they aren’t.  If you enter $40,000 for this year, or for 2030, or for 2040 Quicken will always use $40,000 in the year of the expense.  And of course with inflation if you want to buy a car that today costs $40,000 in the year 2040, you are going to need more than $40,000 in 2040.