A retirement planning tool is only as good as its assumptions and inputs. Share your thoughts or ask questions about the internals of the simulation, built in planner assumptions, or planner inputs.
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Wondering if highly unlikely Monte Carlo realizations are identified and excluded from the probability of success calculation -- or if they don't occur. My expectation from Monte Carlo is that I might see an occasional multiple sigma rate of return, and maybe that would be a + or - 25% or 30% return. But if I saw a + or - 50%, I would exclude it. I can't tell from the output that FRP produces. Thoughts?
There's no magic built into the simulation logic in that respect. It just takes what the pseudo random generator gives it and runs with it.
Got it, thanks Jim!
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