Learn what "hide the effects of inflation" means

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Throughout the Financial Planner, you'll find charts that let you see your finances in one of two views:

• Hide the effects of inflation This reflects the face value of an item assuming you were paying for it today. This number is useful to compare the values of similar items even if they occur in your financial plan in different years. If you want to know the "real" cost or value of something, view the information this way.
• Show the effects of inflation This accounts for 3.0% annual inflation on top of the face value of the item. Use this view to see how your budgeted figures will be changed by inflation. If you change the estimated annual inflation rate in the Lifetime Planner's Taxes & Inflation place, this view will reflect that new rate of inflation.

For example, suppose you plan to buy a car in the year 2020. When you choose Show the effects of inflation to view this information, you'll see the price of the car in 2020 will be $29,800. When you choose Hide the effects of inflation, the cost of the car in today's dollars: $17,600.