Why are annual discretionary spending recommendations so much lower than the average standard of living forecast from the monte carlo simulations?
For example, from the same report. Monte Carlo set with spend cautiously. All assets invested in Vanguard LifeStrategy Growth Fund (80% equities, 20% bonds)
- Annual discretionary spending recommendation (for all years): $102,187
- Monte Carlo result, Low Trajectory Average Standard of Living: $130,054
- Monte Carlo result, Median Trajectory Average Standard of Living: $160,998