Economics Matters with Laurence Kotlikoff cover image

Wade Pfau - A Financially Successful Retirement Is Possible

Economics Matters with Laurence Kotlikoff

CHAPTER

Monte Carlo Simulations in Financial Planning

This chapter explores the use of Monte Carlo simulations in financial planning, highlighting how these simulations generate random returns and their sensitivity to input assumptions. It discusses the historical success rates of retirement income spending strategies and the impact of varying market assumptions on sustainable spending levels. Additionally, the conversation delves into the challenges of using historical data for financial simulations and the implications for forecasting future market conditions.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner