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Nominal ROR (Cash)

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(@pizzaman)
Prominent Member Customer
Joined: 5 years ago
Posts: 639
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Under tab Tabular Projections - sub-tab Rates of Return the Nominal ROR (Cash) is listed as 3.2%. Not sure where that number comes from. My general inflation is set at 3.2%. Under tab Financial Assets - sub-tab Asset Allocation (cash) I have nothing entered (so I assume that means $0). Under tab Asset Classes sub-tab Money Market I have Real ROR set at -1.0%.



   
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(@smatthews51)
Member Admin
Joined: 5 years ago
Posts: 1116
 

Matthew, you may be mixing apples and oranges here. The Financial Assets > Asset Allocation page is where you enter the REAL ROR for your cash account, and you said it's blank so that's interpreted as 0% real. Nominal ROR = Real ROR + inflation (approximately); therefore, your nominal ROR (cash) = 0 + 3.2 = 3.2 as you said you observed on the Tabular Projections page. The Real ROR of your Money Market asset is unrelated to this.



   
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