In terms of successful financial planning advice -- how would you incorporate Time Value of...
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Accounting
In terms of successful financial planning advice -- how would you incorporate Time Value of Money and Inflation iin your planning.
For instance should inflation be ignored?
Perhaps you should simply increase your expected rate of return assumptions by what you expect the inflation rate to be?
Or should you use a conservative (higher) inflation rate and a conservative(lower) expected rate of return? How many scenarios would be appropriate to illustrate?
What happens to your client (even if that is you) if you use the unrealistoc rates?
Take a look at the Consumer Price Index found in Course content area. Where do you think inflation goes next?
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