These are the pages related to the 
Scenario 
Charts which we sometimes write by combining the icons and text as Scenario Charts.
You can learn more about what each measures, how it is calculated, what it is used for, what reports it shows up in, how we use them with different 
Characters and see examples of the Chart by clicking through the various posts below.
The Scenario Chart for the Inflation Rate shows you what the inflation rate is for the Scenario. Additional Information About Scenario Charts If you’re interested in learning more about the Scenario Charts in the Real Estate Financial Planner™ check out these resources below.
The Scenario Chart for the Inflation Rate shows you what the inflation rate is for the Scenario. For many of the basic real estate financial planning models and podcast episodes that we do, we use a static Inflation Rate for the entire Scenario. However, I don’t believe this is the best way to do it. Whenever possible, I strongly suggest using Alternate Universe Modeling™ (aka Monte Carlo) with variable Inflation Rates to see how the entire investing strategy performs in a variety of inflationary environments (low and high). These are considered our advanced modeling. For example, when we apply the … Read more
The Inflated Dollar Value Scenario Chart displays the inflated value of $1 over time. The Chart below reflects the default inflation rate of 3% that you set when you create a Scenario. If you click the “Inflation Adjusted” button the value of the dollar becomes a flat line. Additional Information About Scenario Charts If you’re interested in learning more about the Scenario Charts in the Real Estate Financial Planner™ check out these resources below.
The Scenario Chart for Gross Paychecks shows the sum of all paychecks before taxes. In most Scenarios we assume that the amount earned on a paycheck increases with inflation so the Chart below shows an increase over time. However, if we adjust for inflation the Chart shows a steady rate of income that remains at $5,500 for the duration of the Scenario. Additional Information About Scenario Charts If you’re interested in learning more about the Scenario Charts in the Real Estate Financial Planner™ check out these resources below.
The Scenario Chart for the Effective Income Tax Rate shows the tax rate being applied to a Scenario. The Effective Income Tax Rate is the average rate at which earned income is taxed. This is different from the marginal tax rate which refers to the tax bracket into which an individual’s income falls. Additional Information About Scenario Charts If you’re interested in learning more about the Scenario Charts in the Real Estate Financial Planner™ check out these resources below.
The Scenario Chart for Average Rent Resiliency™ Percent shows the average percent that rent can decline and you’ll still have break-even cash flow. When this line drops below zero it means that you have negative rent resiliency and the rent you are charging is already below the break-even amount. If you have multiple Properties this Chart will represent the average for rents across them all. Additional Information About Scenario Charts If you’re interested in learning more about the Scenario Charts in the Real Estate Financial Planner™ check out these resources below.
The Scenario Chart for Average Rent Resiliency™ Dollar shows the average amount in dollars that rent can decline and still have break-even cash flow. When this line drops below zero it means that you have negative rent resiliency and the rent you are charging is already below the break-even amount. If you have multiple Properties this Chart will represent the average for rents across them all. Additional Information About Scenario Charts If you’re interested in learning more about the Scenario Charts in the Real Estate Financial Planner™ check out these resources below.
