Q - I want to schedule fixed annual withdrawals from a bond. Why are two fields populated when I enter a Fixed withdrawal amount?
Also, what inflation rate is applied when the Fixed With Inflation option is selected?
A - If you specify withdrawals as a monetary amount, the software will automatically populate both the Fixed With Inflation and Fixed Without Inflation fields. Please don’t be confused. This Is intended as a convenience should you need to toggle between the two. Only the selected option (the one showing the green radio button as selected) will be applied.
The Fixed With Inflation option will index future withdrawals to the software’s default inflation rate, as set in Preferences (the cog icon top-left) > Plan Preferences (to the right side of the screen) > Default Inflation / Growth Rates > Inflation Rate %.