|You do not have any Houses in Nomad Calculator 3™|
Yesterday I showed you the variables you can use related to Accounts on the Nomad Calculator 3™. With these variables you can modify things like account balance and rate of return on the Accounts in each Scenario.
While there are not that many, there are a few variables (like the ones shown below) that you may want to modify while modeling your investment portfolio. Eventually, I do plan on making additional capabilities for the calculator to allow you to use scenario-wide values to modify Accounts and Houses. Features like what I’ve added today and what I plan to add in the future will continue to improve your ability to model your own real estate and stock investing portfolios holistically, plus it allows me to do even more sophisticated Monte Carlo simulations for the forthcoming videos, podcasts, blog posts, and books I am writing.
Effective Income Tax Rate
This is your Effective Income Tax Rate for calculating how much tax you pay. If you enter in 19.4 you are saying you're paying 19.4% in income tax.
This is the rate of inflation for the entire Scenario. We use this to show what a dollar in the future is worth in today's dollars. We expect a value of 3.000 for 3% inflation rate.
In quarter 2, 2018 I have been working on (and will continue to work on) features that allow us to set these types of variables to random numbers or quasi-random numbers based on a normal distribution so we can do Monte Carlo simulations of real estate investing portfolios. To be 100% clear, while users can become subscribers of the Nomad Calculator 3™ and use it model both simple and sophisticated Scenarios by changing values, the Monte Carlo features are available only to me since they take up so much time and computer resources to run.
Today, I would like to announce that you can also modify the following variables for Accounts.
This is the amount of money you have in this Account for this month. Expecting a dollar amount in the format of 123000.00 for $123,000.
Yearly Rate of Return
This is the yearly rate of return on the money you have in this Account. The return is calculated monthly even though the return is shown as a yearly return. Expecting an interest rate in the format 11.3 for 11.3% return per year.