Overview

When entering financial data into MaxiFi, you’ll often see the option to enter amounts either in Today’s Dollars or Nominal Dollars. Understanding the difference is important to ensure your plan accurately reflects your intentions.

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Key Definitions

  • Today’s Dollars (Real Dollars):
    Values are adjusted for inflation. The purchasing power is the same as today’s money.

    • Example: If you enter $10,000 in Today’s Dollars for 2050, you’re saying: “I want to plan for an expense that feels like $10,000 in today’s terms, even though the actual dollar amount may be much higher in the future due to inflation.”

  • Nominal Dollars:
    Values are entered as the actual dollar amount you expect in that future year, not adjusted for inflation.

    • Example: If you know you will pay $50,000 for a future college expense in 2035 and you’ve already factored in inflation, you would enter $50,000 in Nominal Dollars.

Examples of Using Each in MaxiFi

SituationUse Today's DollarsUse Nominal Dollars
You're estimating based on current prices or spending levels.

✅


You want MaxiFi to apply inflation adjustments for you.

✅


You're entering an amount that already includes inflation-adjustment

✅

You know the future face value (i.e., lump sum payment, specific expense, etc.)

✅

Where You’ll See This in MaxiFi

You’ll encounter this choice when entering:

  • Earnings;

  • Special Expenses;

  • Special Withdrawals;

  • Roth Conversions;

  • and other lump sums...

Helpful Tip: Use the Preview Button

When entering future amounts, use the Preview feature in the money activity screens to double-check how your entries will appear in both Today’s and Nominal Dollars. This helps verify you’re entering the value as intended.

Quick Rule of Thumb

If you’re unsure, Today’s Dollars is often safer for personal estimates. MaxiFi will apply inflation automatically behind the scenes. Use Nominal Dollars when you have a firm, future amount that you don’t want adjusted.