Thanks for this Monte Carlo. I have went to two financial advisors and these statistical analysis tools are awesome. We are retired at age 56 and can relax more looking at these simulations.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
I am guessing you have to pay to enter yearly withdraw rates for this Monte Carlo. The best free Monte Carlo I have seen. I wanted to change withdraws for go-go years vs no-go years.
I have used this before and like it, but I'm not sure it puts enough emphasizes on taxes. I guess that can be estimated by raising the withdrawal rates to gross, but it's unclear how it is treating taxes. Didn't make any difference whether I used pre-tax or after-tax.
By using a better retirement calculator, it will force you to think about aspects of retirement that you have not considered. And using the calculator under a few different assumptions will give you a very rich look at your retirement future.
Do you know what US stock class I should enter? I have large holdings in a private held company. Historically 20 plus years return 10% Thanks for the proper stock to enter.
Most people don’t do disbursements ONLY for RMDs. Early retirement and delaying start of Social Security benefits are the two most common reasons for doing disbursements for a decade or more before reaching RMD age. And as more and more people from the era after pensions are reaching retirement age the need to use tax deferred savings before RMD age is becoming more the norm.
Show monte carlo results from 2019 that gave any read on a pandemic. If history of performance is no predictor of future results, then monte carlo models a just eye candy a CFP and software used to dazzle, but hardly worth the time.
Monte carlo does not purport to predict all possibilities, such as pandemics. However, it does illuminate how a series of good and bad years randomly occurring might shake things out given your input investments, and that's a whole lot closer to reality than what one might achieve using a fixed constant market growth assumption. That's all it does, and it is a benefit to have such a tool.
The Monte Carlo simulation includes the pandemic years. You can also view those specific years by back testing from then. Because of various factors, the stock market still made money in 2020 after a very brief bear market. The Monte Carlo simulator is an outstanding tool for planning retirement.
