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Net Worth Navigator

FAQ

Does NWN account for inflation?

Yes. Net Worth Navigator models inflation in three integrated ways:

Portfolio growth uses nominal returns. You set stock_return, bond_return, and equity_allocation in your scenario’s [assumptions] section. The model compounds at the full nominal rate — no automatic inflation deduction from returns. Cash buckets grow at a separate cash_return rate (defaults to inflation if not set).

Spending targets CPI-escalate each year. By default (spending_basis = "real"), your retirement_annual and pre_retirement_spending targets are expressed in today’s dollars and grown forward by the inflation rate each year. For example, a $75,000 annual spend target becomes ~$100,800 after 10 years at 3% inflation — the portfolio must support that, not a static figure. You can flip to spending_basis = "nominal" for fixed-dollar spending that does not inflate.

Income grows at inflation plus real raise. Take-home income compounds as (1 + inflation) × (1 + real_raise) - 1. So 3% inflation plus a 2% real raise produces ~5.06% nominal income growth per year. Configured via annual_take_home_real_raise per person.

The net effect is equivalent to using real returns, but more granular — spending, income, cash returns, and home appreciation each inflate at their own rate.

Value basis: By default all figures are shown in nominal (future-year) dollars — projected dollar values with inflation baked in. Set [simulation].value_basis to control the display:

  • "nominal" (default) — Future-year dollars, single chart pass, fastest render.
  • "real" — All values deflated to start-year purchasing power (e.g. 2026 dollars). Single chart pass.
  • "both" — Dual rendering with a toggle pill (💰 Real | 📊 Nominal) below the KPI numbers. Your preference is remembered across page reloads. Two chart passes.

For backward compatibility, [simulation].real_dollar_basis = true maps to value_basis = "both".

What data source should I use?

It depends on your situation:

  • Manual Entry (synthetic): Best for first-time users and what-if exploration. You enter high-level bucket balances directly (taxable, traditional IRA, Roth, cash). No external account setup required.
  • Monarch Money (live sync): Best if you already use Monarch for account tracking. Balances are fetched automatically each run via the Monarch MCP server.
  • CSV Import: Best if you want account-level granularity without a Monarch subscription. Export a CSV from your financial institution and upload it.

See the Data Sources section for detailed setup instructions.

Can I use NWN without Monarch Money?

Yes. Monarch is entirely optional. Set [data_source].mode = "synthetic" in your scenario TOML (or select Manual Entry in the Setup Panel), and supply starting balances directly. NWN works fully offline with no external dependencies.

What do the different render modes mean?
  • Deterministic: Uses the exact return assumptions you configure. One single projection path. Best for most day-to-day planning.
  • Monte Carlo: Runs hundreds of projections with randomly varied annual returns based on your mean return and volatility setting. Shows probability bands (10th–90th percentile) and a success rate.
  • Historical: Applies actual market return sequences from past decades to your projection. Shows how your plan would have fared in different historical periods.

See Render Modes for the full explanation.

How do I update NWN when a new version is released?

See the Updating guide for step-by-step instructions for both Git and ZIP download workflows.

Is my financial data sent anywhere?

No. Net Worth Navigator runs entirely on your local machine. All financial data stays in local files on your computer. The only network calls are optional (Monarch Money API if you choose live sync, and git when you update the application). See the License & Security page for details.

Can I compare different scenarios side by side?

Yes. The Compare Page lets you select any two scenarios and view overlay charts, KPI deltas (difference in net worth, retirement age, success rate, etc.), and side-by-side parameter diffs.