![]() The planners generated year-by-year estimates of our income and expenses from now through 2052. But it’s the year I’ll turn 90 – if I’m still alive. They suggested an order in which we should draw from retirement accounts, how we might save on taxes and other financial tips. The plan contained some interesting euphemisms. ![]() My favorite was Deficit Coverage Strategies. I still don’t know what that means – but it doesn’t sound like something I’ll look forward to. The planners even ran a Monte Carlo simulation to predict the likelihood that our financial plan would “succeed.” In other words, it predicted how likely we were to make it to the ends of our lives without running out of money. For the record, the answer wasn’t encouraging.Īlthough I have an MBA, when I hear “Monte Carlo,” it conjures up an image of Grace Kelly driving Cary Grant around cliff-bound curves in To Catch a Thief. Especially if my cash may be running out! You can avoid gambling with your financial future And I’d rather focus on that than think about my personal cash flow at age 90. Monte Carlo simulations, like all predictive models, are only as good as the data and assumptions underlying them. My husband and I identified some variables for our planners to adjust. ![]()
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