When Should I Check the "Future Value" Box?
Start by asking yourself the following question:
Is the value of the financial that I'm entering a true FUTURE VALUE (in other words, is the value an inflated value as of a future age/date) or am I entering in the value in TODAY'S DOLLARS?
Checking the Future Value box tells the system that the asset will not
attain that nominal value until some future date.
If your answer was Future Value:
Use that “Future Value” checkbox. Also, click within the Value Age/Date box to assign that future age or date.
If your answer was Today's Dollars:
Do not check the "Future Value" checkbox.
Below is a helpful comparison from the SocialSecurity.gov website.
Note: Pensions, rental incomes, inheritances, and other future incomes should be handled the same way.
1. Notice that the same parameters for retirement have very different numbers based on whether “today’s dollars” or “inflated (future) dollars” is selected.
2. Compare Today's Dollars (top) outcome vs. Future Dollars (bottom)
Also, bear in mind that the COLA of a cash flow on a Target-Map will not begin until the day that the cash-flow reaches that future value.