Hello,
I have been using firecalc for a while. I appreciate the tool. I have two questions.
(1) When I use the monte carlo portfolio simulation tool (average and standard deviation return) my returns vary wildly from simulation to simulation. How many iterations of the simulation does that tool do? It seems to not work very well.
(2) When I do that "add certain dollar to portfolio" and then simulate when I can retire, what point in the year the resulting graph assume you retire? For example, if it has a 96% chance of success retiring in 2026, does that assume that I make my full contributions for 2024 (i.e., not accounting for us being 1/4 of the way through 2024) and 2025 and 2026 (and resultingly assume that I retire on December 31, 2026?
Thanks.
I have been using firecalc for a while. I appreciate the tool. I have two questions.
(1) When I use the monte carlo portfolio simulation tool (average and standard deviation return) my returns vary wildly from simulation to simulation. How many iterations of the simulation does that tool do? It seems to not work very well.
(2) When I do that "add certain dollar to portfolio" and then simulate when I can retire, what point in the year the resulting graph assume you retire? For example, if it has a 96% chance of success retiring in 2026, does that assume that I make my full contributions for 2024 (i.e., not accounting for us being 1/4 of the way through 2024) and 2025 and 2026 (and resultingly assume that I retire on December 31, 2026?
Thanks.