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.
Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern.
Hi Richard, you can apply 'Steps' to entries on Voyant - would that help?
@Gustavo_Fring Good call @benjaminfabi - do you know if this is possible?
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.
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.
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.
@benjaminfabi I'm with you on different scenarios. I've been asked if this feature is possible so just looking around.
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.