Inflation rates in cash flow

Does anyone know a cash flow tool that allows different rates of inflation to apply at different times? EG - 7% for next 5 years then 3% pa.

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Comments

  • Hi Richard, you can apply 'Steps' to entries on Voyant - would that help?

  • richallumrichallum Administrator

    @Gustavo_Fring Good call @benjaminfabi - do you know if this is possible?

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. 

  • If you enter an expense i.e 'Utilities', you can specify the inflation rate as 7%, then you can add a 'Step' in five years (you will need to link the step to an event on the timeline), and instruct it to apply an inflation rate of 3%, thereafter.

  • richallumrichallum Administrator

    Thanks. I'm trying to do it across the whole forecast so that the discount rate applied to bring back to today's terms is stepped.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. 

  • Only what Gustavo says re stepping down on specific expenses.

    I'm not really sure what you mean about discount rate, but I would avoid using a global step up/down in inflation. I'd do a separate scenario showing a different rate.

    Benjamin Fabi 
  • richallumrichallum Administrator

    @benjaminfabi I'm with you on different scenarios. I've been asked if this feature is possible so just looking around.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. 

  • NathNath Member

    Hi Rich
    As has already been said above Voyant allows you to do this via the stepdown route. You would just need to either have 1 'lifestyle expenses' which encompassed everything and then step down from 7 to 3 as you refer, or you would have to make sure each expense item was stepped down.
    But in short, yes Voyant can do this.

    Nathan

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