Definition of Monte Carlo Living Standard Values
Submitted by maddog on Mon, 07/10/2017 - 23:39
What does the Living Standard values in the monte carlo analysis represent, compared to the baseline reports? Specifically, two questions:
1) do they represent all spending or just discretionary spending?
2) do they represent 'per adult' or 'total household' living standard?
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dan royer
Tue, 07/11/2017 - 06:30
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They represent the per-adult
They represent the per-adult living standard, not discretionary spending.
maddog
Tue, 07/11/2017 - 23:29
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Thank you. One more
Thank you. One more clarification...does the per-person living standard include taxes that need to be paid? For example, if it says $100K, is that $100K "free to spend" or is it "$25K for taxes and $75K free to spend"?
dan royer
Wed, 07/12/2017 - 06:08
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The living standard there is
The living standard there is always the "per-adult" living standard that you see in reports. If you have your setting for household scale set to two can live as cheaply as 1.6 you'd see that the per-adult reflects that ratio to "discretionary spending." You can see that same number in the Annual Suggestions report and that might help you recall what it refers to. And, yes, this amount is after all the off-the-tops in Total Spending report and after taxes. If you take that number times 1.6 you'd see the amount of household discretionary spending.