Make return pre-tax first, then inflation? Or vice versa? always, one, return, elsewhere

adehbone

Quick one, probably been covered elsewhere, but just want to clear it in my mind.

When you have a post-tax, real return and want to make it pre-tax nominal do you do the tax adjustment first or the inflation adjustment?

I always thought it was tax (on the back of 2009 am 1a) but have just been told differently?

Any thoughts?

Thanks

thommo77

tax adjustment first, inflation adjustment always last. where did you see it any differently?



Edited 1 time(s). Last edit at Sunday, May 29, 2011 at 07:09AM by gjertsen.