From the October 2009 issue of Boomer Market Advisor • Subscribe!

What Monte Carlo is not telling your clients

Expected Return and Standard Deviation of 30-Year Retirement Plans that Produce a 90.0% Success Rate

1 Assumptions of Monte Carlo Simulation are referenced in article above, reported results are the expected value based upon five million trial simulations. Expected values are conservative, they do not account for lost opportunity cost that comes from borrowing when a shortfall is incurred.
2 60% S&P500 Index / 40% US Aggregate Bond Index (Standard deviation derived from yearly return data since 1960)

Reprints Discuss this story

Most Recent Videos

Video Library ››