➕ Forecasting is a Monarch Plus tier feature. Learn more here.
In Forecasting, life events let you see how major financial decisions could change your projection. Forecasting includes default events for retirement, Social Security, and the end of your plan. You can edit these events and add more from the event menu.
Forecasting is available in the Monarch web app. To add a life event, select Add event in the upper right corner. You can also add an event directly from the chart — hover over any point on the net worth line, then click the dot that appears.
Hint: Customize the color and icon of each life event for easier differentiation!
Table of Contents
- Income
- Expense
- Buy a home
- Have a kid
- New job
- Career break
- Windfall
- Retire
- Social Security
- End of plan
- Frequently Asked Questions
- Related articles
Income
For recurring or one-time income that doesn't fit another event type — like a second job or company buyout. This supports two modes: a one-time amount or a recurring yearly amount with an optional end year.
| Field | Description | Default |
|---|---|---|
| Year | The year (or age) the income begins. | — |
| Amount | The income amount — either a one-time total or an annual recurring amount. | — |
| Recurrence | Whether this income occurs once or repeats on a custom interval. If recurring, set how often it repeats (for example, every 1 year or every 5 years) and optionally set an end year. | One-time |
| Change over time | Choose whether the amount matches inflation, changes at a custom annual rate, or stays fixed. Available for recurring amounts only. | Match inflation |
Expense
For life events that don't have a dedicated type — like buying a car, going on an annual vacation, or starting a business. Supports two modes: a one-time expense or a recurring yearly amount with an optional end year.
| Field | Description | Default |
|---|---|---|
| Year | The year (or age) the expense begins. | — |
| Amount | The expense amount — either a one-time total or an annual recurring amount. | — |
| Recurrence | Whether this expense occurs once or repeats on a custom interval. If recurring, set how often it repeats (for example, every 1 year or every 5 years) and optionally set an end year. | One-time |
| Change over time | Choose whether the amount matches inflation, changes at a custom annual rate, or stays fixed. Available for recurring amounts only. | Match inflation |
Please Note: You can add multiple life events of the same type — for example, modeling education costs for more than one child.
Buy a home
This event models the cost of buying and owning a primary residence. Choose how you plan to purchase:
- Finance: Forecasting includes the down payment in the purchase year and annual mortgage payments (principal and interest) for the length of the loan.
- Pay cash: Forecasting includes the full purchase price in the purchase year, with no mortgage payment.
Both options include ongoing property taxes, home insurance, and maintenance costs for the life of your plan. All values are adjustable. The monthly mortgage payment is calculated automatically based on your inputs. If you finance with a down payment under 20%, Forecasting also adds private mortgage insurance (PMI) and shows when it drops off.
| Field | Description | Default |
|---|---|---|
| Home value | The total purchase price of the home. | $400,000 |
| Down payment | The percentage of the purchase price you'll pay upfront. The remainder becomes your mortgage principal. | 20% |
| Mortgage term | How many years you plan to take to repay the loan. | 30 years |
| Mortgage rate | The annual interest rate on your mortgage loan. | 6.5% |
| PMI | Private Mortgage Insurance — an annual cost charged by lenders when your down payment is less than 20% of the home's value. Expressed as a percentage of the loan amount. Once you reach 20% equity, PMI stops automatically. | 1% annually |
| Property tax | Estimated annual property taxes, expressed as a percentage of the home's value. | 1% annually |
| Home insurance | Estimated annual homeowners insurance, expressed as a percentage of the home's value. | 0.5% annually |
| Annual maintenance costs | Estimated yearly upkeep and repairs, expressed as a percentage of the home's value. | 1% of home value |
| Change over time | Choose whether yearly property taxes, home insurance, and maintenance costs match inflation, change at a custom annual rate, or stay fixed. | Match inflation |
All values are adjustable. The monthly mortgage payment is calculated automatically based on your inputs.
Have a kid
This models the costs associated with having a child in the future.
| Field | Description | Default |
|---|---|---|
| Yearly childcare costs | Your estimated average annual cost of raising a child, including daycare, schooling, and other child-related expenses. | $18,000 |
| Years of childcare | How many years you expect to cover these costs. | 13 |
| Upfront one-time costs | Initial one-time expenses at the time of birth, such as nursery setup, baby gear, and medical bills. | $4,500 |
| Change over time | Choose whether the amount matches inflation, changes at a custom annual rate, or stays fixed. | Match inflation |
For guidance on modeling costs for a child you already have, see Frequently Asked Questions below.
New job
Model a new income source, a signing bonus, and any reduction to your existing income when the job begins.
| Field | Description | Default |
|---|---|---|
| Event owner | The household member starting the new job. | Current user |
| Year | The year the new job begins. | — |
| Yearly take-home income | Your expected annual take-home pay at the new job, after taxes and deductions. | — |
| Signing bonus | Any one-time income received when starting the job, such as a signing bonus or relocation stipend. | $0 |
| Income reduction | How much each of the event owner's existing income sources should be reduced when this job begins. At 100%, the existing income source stops entirely. Adjust per source to reflect any overlap or part-time continuation. | 100% per source |
| Change over time | Choose whether the amount matches inflation, changes at a custom annual rate, or stays fixed. | Match inflation |
Career break
Model a temporary reduction or pause in income, such as a sabbatical or a period of part-time work.
| Field | Description | Default |
|---|---|---|
| Event owner | The household member taking the career break. | Current user |
| Start year | The year your career break begins. Monarch assumes you start at the beginning of this year. | — |
| End year | The year your career break ends and you return to work. Monarch assumes you return at the beginning of this year. | — |
| Living expenses | What percentage of your current spending you expect to maintain during your career break. | 100% (no change) |
| Income reduction | How much of the event owner's income to reduce during the break. At 100%, all income stops. Lower this to model part-time work or a lower-paying role. | 100% |
Please Note:
- Yearly paycheck contributions for accounts owned by the person taking the break are automatically paused for the full duration of the career break. They resume when the break ends.
- If your break is less than a full year, set the end year to the year after your start year (the shortest possible break is one year) and adjust the income reduction to reflect the portion of the year you'll be off — for example, 25% for 3 months off, or 50% for 6 months off.
Windfall
For a one-time influx of money, like an inheritance or company buyout. Enter the year you expect to receive it and the amount. Unlike Other income, a windfall is always a single event — there's no recurring option, end year, or change over time setting. For income that repeats, use Other income instead.
| Field | Description | Default |
|---|---|---|
| Year | The year (or age) the income begins. | — |
| Amount | The income amount — either a one-time total or an annual recurring amount. | — |
Retire
Each forecast starts with a Retirement event for each included household member. By default, retirement begins at age 65, income sources assigned to that person stop, and your living expenses stay at 100% of your current spending plus $6,500 per year in additional expenses. You can adjust both the expense percentage and the additional yearly amount. You can adjust these settings, including reducing income by less than 100% to model a partial retirement.
Other income events assigned to the same person also appear in the Retirement event, where you can choose whether they end at retirement.
| Field | Description | Default |
|---|---|---|
| Year | The age at which you plan to stop working full-time. | Age 65 |
| Expenses in retirement | What percentage of your current spending you expect to maintain after retiring. 100% means your expenses stay the same; a lower value models a leaner retirement lifestyle. | 100% of current expenses (inflation-adjusted) |
| Additional yearly expenses | Any new recurring costs that begin in retirement — like increased travel, healthcare, or hobbies. | $6,500 |
| Change over time | Choose whether the amount matches inflation, changes at a custom annual rate, or stays fixed. | Match inflation |
| Income reduction | What percentage of the owner's income sources to end at retirement. At 100%, all income sources assigned to that owner stop entirely. A lower percentage models a partial retirement where some earned income continues. | 100% |
Social Security
Forecasting generally creates a separate Social Security event for each household member included in your forecast. Each event assumes benefits start at age 65 and are $2,000 per month. You can adjust the start age and benefit amount for each person.
A default event may not be created if a household member's birthday is missing or they will be 65 or older by the end of the current year. Review your income assumptions to make sure any expected benefits are included without counting them twice.
| Field | Description | Default |
|---|---|---|
| Start age | The age at which you expect to begin receiving benefits. You can start as early as age 62; delaying retirement benefits can increase your monthly amount up to age 70. | 65 |
| Monthly benefit | Your estimated monthly Social Security payment. Find your personalized estimate at SSA.gov. | $2,000 |
| Change over time | Choose whether the amount matches inflation, changes at a custom annual rate, or stays fixed. | Match inflation |
End of plan
Every forecast includes an end of plan event, defaulting to age 90. This event marks the end of your financial projection.
| Field | Description | Default |
|---|---|---|
| Year | The age that marks the end of your financial plan. | Age 90 |
Please Note: It's generally better to plan for a longer lifespan than average. If you live longer than your plan's end date, your forecast may show a gap.
Frequently Asked Questions
How do I model expenses for a child I already have?
The Have a kid event is designed for future expenses, so it can't start in the past. To model costs for a child you already have:
- Add a Have a kid event and set Years of child expenses to the number of years you expect costs to continue. For example, if your child is five and you expect costs to continue through age 13, enter eight years. Review Yearly child expenses and Upfront child costs and adjust the amounts to reflect any costs you still expect.
- If childcare is included in your current spending, remove it from your living expenses baseline to avoid counting it twice. In your forecast assumptions, turn off Use actual expenses as baseline and enter your annual living expenses without childcare costs. For more on the baseline, see Managing Forecasting Assumptions [insert link].
The event will add childcare expenses for the remaining years you entered.
Why is my life event’s starting amount adjusted for inflation when I’ve set a custom growth rate?
The starting amount is adjusted for inflation from today until the event begins. Change over time controls how the amount changes after the event starts.
For example, if you enter $100,000 for a job starting in five years, with 3% annual inflation and 5% annual growth, the forecast starts at approximately $115,900. The following year, it increases by 5% to approximately $121,700.
You can't enter a future value directly, but you can work backwards by dividing it by (1 + inflation rate)^years. For example, to start at $100,000 in five years with 3% inflation, enter approximately $86,300: $100,000 / (1.03)^5.
Related articles
These forecasts show hypothetical outcomes based on your account information and the assumptions in the model, including any changes you have made. Projections do not guarantee future performance. Even small shifts in assumptions can lead to very different results over time. If you are viewing a projected retirement balance or goal outcome, it is based on assumptions such as rate of return, inflation, tax rates, and life expectancy. We show you those assumptions, and you can adjust them. If you change the inputs, the outcome will change too. This tool is for informational and educational purposes only. It is not investment, tax, legal, or financial advice, and it should not be the only basis for a major financial decision.