success108
Dryer sheet aficionado
- Joined
- Oct 27, 2005
- Messages
- 28
It appears that FIRECalc is accumulating negative balances. For example, if a scenario goes negative in year 15; that negative balance, plus future withdrawals, are then accumulated at the scenario return until the end of the projection.
This doesn't make sense in practice: when your stash is depleted, you wouldn't short sell the market. What's worse is that this likely grossly exaggerates how negative ending balances can be, showing a much scarier picture than what history would have delivered.
Is this the intended behavior? Or is it a simplification - everything is always accumulating instead of it being conditional on a positive balance? Or maybe I'm wrong and not looking at the output accurately.
This doesn't make sense in practice: when your stash is depleted, you wouldn't short sell the market. What's worse is that this likely grossly exaggerates how negative ending balances can be, showing a much scarier picture than what history would have delivered.
Is this the intended behavior? Or is it a simplification - everything is always accumulating instead of it being conditional on a positive balance? Or maybe I'm wrong and not looking at the output accurately.