How Monte Carlo Simulations Help in Financial Planning
Goldstein on Gelt
English - June 10, 2021 20:30 - 13 minutes - 7.95 MB - ★★★★★ - 30 ratingsInvesting Business Education Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
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 planBefore 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? If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free ebook The Retirement Planning Book.