Monte Carlo Simulations – Details Matter
Monte Carlo simulations are an important aspect of testing the viability of a client’s financial plan. Unfortunately, the Monte Carlo engines in standard financial planning software are based on the overly-academic Random Walk model, leading to unrealistic long-term volatility profiles at odds with historical data.
Monte Carlo Simulations – Details Matter
Monte Carlo simulations are an important aspect of testing the viability of a client’s financial plan. Unfortunately, the Monte Carlo engines in standard financial planning software are based on the overly-academic Random Walk model, leading to unrealistic long-term volatility profiles at odds with historical data.