Tie Out Cash Flow Distributions Beginning and Ending Balances

In the Cash Flow Distributions section the beginning investment balance next year does not equal the ending investment balance this year. Why not?

This is due to placing everything in today’s dollars. In order for all numbers in each year to add up, the beginning balance is also reduced by the inflation rate in that year. That is why the beginning balance does not equal the previous ending balance. It’s basically a quirk of math when placing everything in today’s dollar terms by stripping out inflation. If you turn off using ‘today’s dollars’, you will see that the beginning balance will then equal the ending balance. See the image below for the setting to turn this off.

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