Inflation and other Rates
Hey there
I'm curious what the general stance is on a few rates to use, specifically Inflation , Social Security COLA and medical inflation.
I started to use the built in averages, which I believe was 2.5% for inflation. I decided to change that to 3% just seeing how its been the last 8 years.....and also changed COLA to 2.5 from 3.
That made a drastic difference.....going from 99% to 92%, but also in pessimistic mode running out of money...yikes.
I believe these rates are fixed, and so in theory I could change them each year to be more accurate - and I do realize Monte Carlo should be running those kind of scenarios - but was just a little surprised how much a .5% change made ......
In reality its a 'living plan' so I can adjust spending each year, as we should - but still kind of freaked me out....
Thanks
John