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2015 Conference

October 15–16, 2015

Orlando, FL

Welcome to the AFS Conference 2015 Schedule App. Please use the search features to see when your session or poster has been scheduled to take place. 

Treatment of Inflation in Financial Planning

Friday, October 16, 2015 at 7:45 AM–8:45 AM EDT
Scotland C
Keywords: 5 words maximum

inflation, retirement planning, financial planning, economic forecasting

Very short description for use in the program to help attendees understand more than a title can describe

Financial planning textbooks discuss inflation briefly, and case studies state some assumed inflation rate.  For long term planning, such as calculation of the capital needs for retirement, the pre-retirement period is often considered in nominal terms, then with calculation of an inflation-adjusted interest rate for the capital needs at the point of retirement.  I review salient issues about inflation from the economics literature, and discuss important financial planning issues related to inflation, for instance the treatment of annuity payments that do not have COLA features.  I will propose alternatives to the standard textbook calculation method for capital needs for retirement.

 

Lead & Corresponding Author

Sherman Hanna, Ph.D., Ohio State University
Job Title

Professor

Additional Authors

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