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Default Rates - Other Rates

These additional rates focus on inflation related figures, whether that is inflation itself, or COLA for Social Security and tax tables.

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Discount Rate for NPV Calculations: This is used primarily for life insurance survivor needs analyses. Think of this as the expected after-tax rate of return when life insurance death benefits are paid out and invested. The Moneytree default is 6%. It is also used for Social Security Optimization reports.

Increase Rate for Federal Tax Tables/Exemptions: Many tax figures, such as standard deductions and tax bracket breakpoints, increase annually for inflation. Use this field to model that expected annual increase rate. The Moneytree default is 2%.

Social Security Benefit Increase Rate: Enter the annual COLA for Social Security benefits here. Most statements provide benefits in today's dollars. This rate will be applied to benefits both before and after benefits begin. The Moneytree default is 2%.

Pre-/Post-Retirement Inflation Rate: These two fields represent the default expected inflation rate for personal expenses. Different rates can be used for pre-retirement retirement years. The Moneytree default is 3.2% for both pre-retirement and retirement.

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