Perfect - thanks!

"Jeff" wrote:

- quote -

On Aug 31, 10:30*pm, cpa10house <cpa10ho...[at]discussions.microsoft.comwrote:
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The Lifetime Planner corrects for inflation. For example, if you make
$100,000 and you say that you make annual increases of 5%, then you
would assume that in year 2 you would see an income of $105,000. That
would be true if you in the results:the bottom line section you check
the box "Show the effects of inflation".

If you do not have this box checked, then all future years are shown
in year 1 dollars and so your 5% increase would be reduced by the
effects of inflation. If you have inflation at 3% like the default,
then your 5% increase turns into something a little less than 2%.
(Why less than 2%....take your year 1 dollar, multiply it by 1.05 then
divide that result by 1.03 and you'll see the result is ~1.094175).
This takes into account the time value of money and so decrements
future dollars. An inflated dollar tomorrow does not buy what it does
today.

One of the things I like about the Money Lifetime Planner over the
competition's is that it provides the option to view the results
either in inflated future dollars or in today's dollars.

Hope this helps.

Jeff

On Sun, 31 Aug 2008 19:30:01 -0700, cpa10house
<cpa10house[at]discussions.microsoft.com> wrote:

- quote -

You are either inputting your data incorrectly, or possibly using a method for
annual increases that Money cannot deal with.
--ron

Under my "Career" in the Lifetime Planner using Money 2K7 Home and Business,
it is not calculating my projected annual increases correctly. Not even
close.

Any ideas on what I'm doing wrong?