Got inspired by @matt.41 and @edsam to upgrade one of my calculators. You can now choose Monte Carlo (Statistical) as the simulation method and set the strategy’s: - Expected return - Volatility - Yield - which we keep constant, since I think that’s what many people try to target and maintain This lets you see how much is being spent and reinvested. And if you want to see the implications of applying the "4% rule", you'd just set the expenses to 4% of your initial portfolio. https://karyungtom.com/monte-carlo-retirement-calculator/
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18 Comments
Catherine @ffcatherine · 11h
Oh YAY 😁 it’s awesome to finally get a calculator to simulate 40-50 yrs instead of the typical 30 I retired young by choice however listening to many podcast I realize many ppl who plan to work to 65 don’t actually.. often for heath reasons or for company policy reasons people are let go 10+ yrs earlier than planned Thank you Kar
Moe @moementumfinance · 9h
Fantastic! Great job Kar. After I inputs the values for my circumstance, if I see the 30, 35 or 40 years is not at 100%, should I essentially be exploring whether I could puesue any of these option? 1) lower my withdrawal rate (annual expenses) or 2) increase the starting size of my portfolio? Would you aim to get to 100% or is there a smaller threshold that if observed in 30 year plus mark is acceptable (e.g. 90% or higher succrss rate). I think if the calculator did also provide a few key observations/takea2ays in text form that could take it to the n3xt level. Though I must admit you have already done a phenomenal job. It would be awesome if others like @etf.go also put it to test.
Alessandro @alejcanales7 · 9h
The material I’m studying for my retail securities exam lists The Monte Carlo simulation model as part of the material Cool to see this applied on Blossom. I didn’t know how readily used it is
Not Financial Advice @anpc86 · 7h
Nice, will have to give this a try im rubbing hands when i can get to try out some ideas on retirement planning been busy with my Precision Health system and I got distracted and wanted to build a resume/portfolio website … but i want to tackle this concept
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