Smarter Monte Carlo
Old-school Monte Carlo, used by all other financial planning tools, is deeply flawed.
First, it uses an outdated, extremely rough “rule of thumb” to set a post-retirement annual spending target. This approach is sure to miss the mark, potentially by a huge margin. Second, it calculates the probability you can spend this exact amount every year during retirement.
Using the wrong spending target makes no sense. And it is unrealistic to assume you will blindly maintain your spending target regardless of how your investments perform.
In the end, old-school Monte Carlo risk analysis measures the chances you won't run out of money in spite of rigidly spending the same amount year after year.
MaxiFi takes a smarter approach.