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Author Topic: Portfolio Analyzer - Monte Carlo Simulation Interpretations

  • Posts: 1
Any input appreciated!

I've run two portfolios.  General input:  40 year time horizon, customized risk/return statistics, sequence of returns  first 10 years worst years .  First portfolio, no income in a 40 year time period.  Second portfolio, income based on life expectancy starting year 1.

Regarding Loss probabilities:
For a given return range (say >=2.5%), why would the probability of a loss be greater for a portfolio in which you were NOT taking income be HIGHER than for a portfolio in which you WERE taking the income.

Am I "mixing my metaphors", not comparing apples to apples???

Thank you!
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  • Posts: 8
Yes, sounds complicated. Have you thought about diversifying further? Like with property crowdfunding, for example. You can invest in much more than just 2 assets for small amounts of money.
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