Monte Carlo

Given your asset allocation, what is the possible upside and downside to your living standard?

In Monte Carlo mode, you choose from a list of assets to tell our software how you are investing your regular and retirement account assets. You also specify whether you intend to spend aggressively, cautiously, or conservative over time, i.e., whether you will spend assuming you'll always earn the mean return, half the mean return, or a zero real return on your assets.

Our software uses your portfolio allocations and historic return data to simulate the probabilities of different living standard outcomes. Unlike Upside Investing, which assumes you never spend out of risky assets, Monte Carlo mode lets you spend out of risky assets and take the chance that your assets will preform poorly, in which case your future living standard will decline.