How does the Inflation rule work in Fast Forward?

The inflation rule is simply showing your net worth in today's dollars (adjusted for inflation).

Seeing your future net worth in today's dollars means adjusting your future net worth to reflect what they would be worth in terms of today's purchasing power. This process is called "discounting." It helps you understand the real value of your future assets and liabilities, considering the expected increase in prices over time.

For instance, imagine you estimate your net worth to be $1 million in 20 years. Seeing this in today's dollars would tell you what amount of goods and services that future $1 million would buy today, considering inflation.

Just click on the future net worth number or the chart to see the calculation. It finds out the future net worth based on your rules, and finally discounts it based on the inflation rate, to show you how much it'll be worth in terms of today's purchasing power.