For monte carlo and historical analysis, are both essential and non-essential expenses included in these analyses when "specific expenses" are selected?
Hi, all your 'specified' expenses (the expenses you input) are assumed/used in both the Monte Carlo and Historical analysis....UNLESS you have selected one of the variable spending strategies on the Analyze > Spending Strategies Page. In this case all your 'essential' expenses are used and the non-essential expenses are replaced by 'variable' spending that is calculated based on the spending strategy you used.
The Monte Carlo Analysis recalculates your scenario 1,000 times, randomizing your investment rates of return on each iteration.
The Historical Analysis recalculates your scenario about 90 times or so, assuming the actual historical market returns and inflation rates.
The user manual explains this in considerable detail. On any web page, you may click the circled question marks to see the pertinent section of the user manual.
I hope this answers your question.
