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 Median Fail Age represents the median age of failure for those plans that are unsuccessful. It may give you some additional comfort. For example, let us suppose that your financial plan is for retirement and your after-tax goal lasts from the time you are 65 until 95. If your plan's Success Rate is 75% and fails 25% of the time, it means that the failed iterations ran out of money before the age of 95. This could be concerning. However, if those failed plans ran out of money at a median age of 94, you may be somewhat comforted.
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