Investing - Theory, News & General • Help with theories of "Funding Ratio" and PV

In the year 2053:
Income = $65K (in 2024 $) = $26K (in 2053 $)
Expenses = $50K (in 2024 $) = $125K (in 2053 $)

Tell me if you think that statement is wrong.

I think that statement is wrong.

Specifically the first part where you "adjust" your income to 2053 dollars. In fact, if you have a $65K non-COLA-adjusted pension, you will get exactly 65K nominal dollars in 2053, but your expenses will supposedly have risen to 125k nominal dollars. 2053 dollars will presumably be worth much less than 2024 dollars, but that doesn't matter in 2053.

Statistics: Posted by bd7 — Mon Sep 09, 2024 10:37 pm — Replies 2 — Views 100

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