Monte Carlo simulations take a huge amount of data and possible variables and let you know the chance of a specific outcome. Financial planners use Monte Carlo simulations to look at all sources of cash flow, income from investments, possible market scenarios and predict whether you’ll “make it” in retirement.
Watch a short video about Monte Carlo simulations.
While Monte Carlo simulations are a starting point to financial planning, Doug’s interview with Dr. Harry Markowitz titled Can Modern Portfolio Theory Make You a Better Investor? highlights all the options.
Can you predict what your financial future will look like?
Creating a financial plan
Before you begin your financial plan, make sure to download the free resource What Checklist Do I Need for a Financial Plan? The list outlines all the questions a financial advisor asks. Start thinking critically about your finances. Download What Checklist Do I Need for a Financial Plan?
Download free resource: What Checklist Do I Need for a Financial Plan?
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