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Email this5:36 am
January 10, 2017
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AltaRed said
5. A competent planner should run all these in any event without even asking. S/he will either use the planning assumptions of https://www.fpcanada.ca/docs/default-source/standards/2024-pag---english.pdf or tweak them a bit for unique conditions.
That document states, in 2024, forward inflation is assumed to be 2.1% into the future. Seems to me they are only looking in the rearview mirror. I do not see much in the way of taking in all relevant facts to make their predictions.
7:59 am
October 27, 2013
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Discussing FP Canada planning assumptions on inflation should really be discussed elsewhere. I suspect most planners would, as would I, be a bit more conservative at 2.5-3% on a 10 year forward look but it is up to the individual being discussed in the OP to decide, if he ever gets a planner to run scenarios, to discuss assumptions with him/her.
9:17 am
September 24, 2019
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rodeworthy said
Alexandra, I have missed your thoughtful and upbeat posts on this forum for some time now. I was concerned by your absence and on the verge of posting to see if anyone had any news about you.In your usual efficient manner, you have not only taken the right steps to detect and deal with a serious health issue but you have let us all know about the situation. I thank you for that.
I am very sorry for what you have been through but your message is encouraging in that the problem has been dealt with in time for you to have a good recovery.
As one of the oldest, if not ‘the’ oldest, members on this forum (my spouse and I are both full-fledged octogenarians) I concur that it is time to back off somewhat from chasing after the ‘last buck’ and deal with other matters that come with getting older.
You have done a masterful job of managing your affairs and I have learned a lot from your postings. I can’t recall any one of them containing a complaint.
Thank you for your contributions and I look forward to seeing more of your postings to let us know how you are doing and keeping this forum informed with positive ideas and news.
All the best to you.
Thanks to all who have expressed wonderful words of encouragement and support. Your words truly touched me.
12:50 pm
March 30, 2017
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AltaRed said
Discussing FP Canada planning assumptions on inflation should really be discussed elsewhere. I suspect most planners would, as would I, be a bit more conservative at 2.5-3% on a 10 year forward look but it is up to the individual being discussed in the OP to decide, if he ever gets a planner to run scenarios, to discuss assumptions with him/her.
I am no sure planners will assume that. Not too too long ago, every single planner / advisor assumes 7% return as an average annual return for a average risk appetite portfolio. It was well past after we saw rates dropped to zero and stay that way before planners change their "assumption" to 5%.
So I am not surprised if planners keep using 2% only because they have data to back them up even if they are wrong. No skin in the game.
4:04 pm
October 21, 2013
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The planning industry makes certain assumptions based on consensus opinion. The future is always anyone's guess, including changes in tax law.
About 10 or 12 years ago we were told by a CFP that the assumption was about 4 or 5% (if memory serves) IF we followed his advice.
As client, you can instruct them to choose a number you agree with, or even a choice of numbers.
Please write your comments in the forum.