Minimum starting portfolio to achieve success
I have 2 questions about the feature of FireCalc which gives the minimum starting portfolio needed to achieve success with a certain terminal value left in the portfolio.
1) Is the "terminal value" amount one enters in the "options" tab a value which is based on "today's dollars" (ie 2006 dollars), or is this amount in "future dollars" at every year of the simulation?
2) I do not understand the following behavior of the calculation: when I enter progressively higher amounts for this terminal value in various runs (for example, starting with $100000, then $200000, and so on), up to amount of about $800000, the results show indeed a minimul portfolio value which is close to this entered amount. However, as of certain amounts, with my data set as of about $1000000, the resulting minimum portfolio value jumps to much higher than this minimal limit I entered, ie. for $1000000 value I set, the portfolio result shows about $2200000 terminal value at all times. How come that there is such a big gap between these values?