Another classic approach to studying retirement withdrawal rates are Monte Carlo simulations. Simply put, these simulations provide a way to develop sequences of random market returns fitting ...

What is Monte Carlo? How might you go about using Monte Carlo simulations for your retirement plan? Well, first you need to understand what Monte Carlo is and what it isn’t.

It is possible to do Monte Carlo simulations using ordinary spreadsheet software, but many forecasts use specialized statistical software packages to generate the simulations.

Financial Engines performs its Monte Carlo simulations based on information you input about your age, marital status, goals and investments.