Review and customize inflation assumptions
Default inflation assumptions
RightCapital uses five different inflation assumptions to project goals and expenses. The inflation assumptions are global variables that can be customized.
Inflation assumptions were derived by referencing studies and planning tools from leading financial institutions and industry experts. Historical return data (over the past 40 years) was used to derive the default return assumptions. The inflation assumptions are as follows. We plan to review the data on an annual basis.
Custom inflation assumptions
Advisors can set the inflation rates within the Assumption section. Any adjustments will apply globally across all client plans. This inflation will be used in the following way:
Adjust the social security payment every year for those who have started the benefit.
Adjust PIA Bend point and other variables needed to calculate social security benefit.
Adjust the Social security salary base every year for the purpose of calculating maximum social security benefit.
Adjust the max contributions on employer-sponsored plans and IRAs
Adjust taxable income brackets
Inflation timing
Under the global inflation settings advisors have the ability to specify whether the values entered for cash flow items such as goals, income, savings, or expenses inflate between now and the start date of the item.
If the box is checked, items with a future start date will be adjusted for inflation beginning today. This will not impact pension income, annuity income, loan income, business income, estate income or asset/property purchase goals.
