monte carlo

Monte Carlo numbers

In the Monte Carlo simulation, at age 70, my projected retirement assets is 598,378. However, when I go to the probability of my retirement assets lies within specified range of projected trajectories, Monte Carlo says that I have zero chance of being between the 0-50% (0- 797,309) with a 6% chance of being between the 50-75% (797,309- 1,007,507).

My question is this, how can my projected retirement asset of 598,378 at age 70 occur when Monte Carlo itself says that there is 0% of this happening?

Projected Trajectory

Sorry I'm a newbie. I looked on the forum and the help file. Could someone please explain the meaning of the "Projected Trajectory" of standard of living (recommended consumption) column shown in the Monte Carlo Trajectory_Living Std report. Thanks.

Spending Behavior Cautious Agressive Conservative

In the “Planning Method | Monte Carlo | Spending Behavior” window, the options to specify aggressive, cautious, or conservative spending behavior exist. Although I have read the case "Spend Defensively If You Invest Aggressively," I am still unclear about these three spending behaviors options.

Is there a better explanation of Monte Carlo somehere?

I am having great difficulty understanding the reports. The manual uses numerous terms of art without defining them. As a simple example, the term "living standard" is never defined. Why is living standard different from consumption? I won't even start on the explanation of the Monte Carlo reports. ESPlanner is a great product and is very easy to use but the documentation for the reports was written for someone who has a Ph.D. in either economics or statistics, which, unfortunately, I do not.

Is there an ESPlaner Reports for Dummies?


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