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Confused by Pralana's use of the terms "Real Rate of Return"

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(@jeffcorn)
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Joined: 10 months ago
Posts: 2
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The pralana manual seems to make Real Rates of Return vs Nominal Rates of return more complicated than need be.

Can someone please clarify/confirm for me that any rates of return I enter on the "Simple Portfolio Modeling" page are truly "Real Rates of Return", as in, if I expect an 8% Nominal Return from an account, and my inflation rate is set to 3%, then I should enter 5% as the ROR for this account, yes?



   
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(@smatthews51)
Member Admin
Joined: 5 years ago
Posts: 1121
 

@jeffcorn Yes, that's correct.

Stuart



   
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