Monte Carlo instructional reference?
Can someone refer me to an instructional guide as to how to use and read Monte Carlo data, particularly in ESP? I understand the concept. I'm just not certain how to prepare the data and interpret the results.
That need for information includes how to build and implement different portfolios. If I surmise correctly, the large number of portfolio options applies more to people younger than myself. I'm about 5 years out from retirement, so my need to change allocations over time is less than if I were 20 years out, right?
I got my model working pretty well using economic planning. In fact, I used it to model a potential job change by my wife, with a significant decrease in income and retirement account investment. The results were comforting in that, while we both would have to work an additional year, it wouldn't be too dramatic a change in retirement lifestyle.
Now that that's working, I want to apply more realistic MC tests, assuming MC is, in fact, more realistic.
Thanks for your time.