Regular Assets Income
Submitted by norrislorenm on Sun, 07/06/2014 - 21:19
I'm new to the program, and I'm trying to understand how the Regular Asset Income column is calculated in the Total Income Report.
The report is generating a sizeable negative number every year even though the Current Savings Report shows the correct positive income on regular assets for this year. What's also puzzling is that increasing or decreasing the nominal rate of return on regular assets does not seem to impact the numbers generated in the regular asset income column.
Thanks,
Lorena
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Comments
dan royer
Sun, 07/06/2014 - 21:19
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You are looking at the Total
You are looking at the Total Income report right? And then you are looking at the column for Reg Asset Income.
If your assumed nominal rate of return is less than your assumption about inflation, you will see negative numbers (remember the reports are in today's dollars). So perhaps you have the program set to change your assumption about inflation after the first year? If you set reg asset return at 3% and inflation at 3% you will see 0.00 regular asset income.
norrislorenm
Sun, 07/06/2014 - 21:20
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Thanks so much. You are right
Thanks so much. You are right, except that, because I had inadvertently clicked yes to change the rate of return for future years and didn't realize I had done so, the nominal rate was set to the default of 0%, including for the current year. No wonder I was puzzled!
Still shaking my head...