Our third-party financial planning software generates 1,000 simulations of your financial plan in order to calculate the Success Rate and Median Fail Age. The Success Rate for your financial plan identifies how many of these simulations were successful. A successful iteration is one that has money left in the portfolio at the end after satisfying your goal.
Ideally, a success rate between 70-90% helps us understand whether the financial plan is on track. Too low of a success rate could mean you need to contribute more to your accounts, lower the amount of your after-tax goal, or delay the start date of your after-tax goal. Too high of a success rate means you may end the plan with too much money left.
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