Every time I run the monte carlo simulation I get different results - I assume this is expected since the random numbers used to generate the results are different on each run. However I find the differences are significant enough that I cant rely on the results for future retirement planning. After 20 years one run generates a 50th percentile living standard of 114K per year, a second rerun of the same inputs generates a 50th percentile living standard of 122K per year. I can imagine that this is not a bug, but is just the way monte carlo simulations work.
Are there any plans to add more asset classes to the "build portfolios" portion of the Monte Carlo planning method? For those of us who do not have access to Dimensional Funds, the options are very limited. I'd like to have access to historical data for Large Cap Value, Large Cap Core, Large Cap Growth, Mid Cap Value, Mid Cap Core, Mid Cap Growth, Small Cap Value, Small Cap Core, Small Cap Growth. I'd also like to see separate options for short, intermediate, long term bond funds in both the government and corporate sectors. Thanks!
Is there any information on setting up and using the ESPlanner Monti Carlo features. I'm looking for ESPlanner specifics.
Just working through the Monte Carlo simulations and excited to be getting some data but first have a question about "Implement Portfolios" folder.
So i have 7 accounts. 6 tax sheltered (3 each for my wife and myself that are tax sheltered) and one open joint account.
This section asks me in what years do i want to draw from each account?
Fair enough but i have no idea!
So my two questions?
I have been working to get the Monte Carlo section up and running for my situation and have a couple of questions regarding its implementation.
A little background:
In the years 2022-2025 of my Details Report (Monte Carlo planning method), my Total Income is less than Total Spending. Why would this be?
I'm using the Monte Carlo simulation with Conservative Spending to assess the risk that my plan won't meet basic living requirements far into the future. To do that, I'm looking in the Monte Carlo results at the Percentile Distributions of both Living Standard and Income. Specifically, I'm looking at the 5% column to get an idea of the worst case.
The worst case doesn't look very realistic.
I am not clear on what the Monte Carlo simulations are estimating when I use the Conservative Spending option. Can someone explain, perhaps by taking one simulation for one year, and indicating what assumptions are used to generate the living standard and real asset income? For example, is asset income generated assuming the real rate of return (which appears to be the case) or a zero real rate (which is used in the non-Monte Carlo portion of the PDF report)?
When I run ESPlanner assuming conservative spending, is it correct that the Details and Suggestions section of the PDF report assume that I spend, and earn, zero real return on my investments, in each year until the last year when no assets are left? Then, if that is true, what are the assumptions regarding spending and earning in each of the various runs in the Monte Carlo simulations that are reported in the PDF table entitled Percentile Distribution of Living Standard?
I'm inputting my assets so that I can build portfolios based upon the assets that I own. My latest entries do not seem to be saved. Is there a limit on the number of assets? If so how can I delete the assets you pre-populated in the program. I don't intend to use any of the Dimensional Assets and if there is a limit on the number of assets I want to delete the Dimensional ones.