Financial Tip of the Day - Planning

[STGS]

It has been a bit since my last FTOD, and for that I apologize.

I am a huge planner. I am also a bit of a numbers geek. I love to run models, financial calculations, simulations, etc...

I recently came across a very powerful and useful tool in the world of financial calculators. It is free too...

https://www.portfoliovisualizer.com

This is not your average retirement calculator, and unless you have a bit of experience with finance & modeling (think simulation, not stimulation), this could require some additional learning.

I have only run 10-15 scenarios through this tool, but it appears to be very effective at sensitivities, Monte Carlo simulations, etc....

Have a go at it and see if it might help you.

[Aggie PhD]

Oh this has got to be good! Not often I hear Monte Carlo/Markov Chain simulations brought up in a casual conversation

And now the rest of my day will be spent running sims

[gingib]

Appreciate all the tips, but this one is over my head

I am a big planner though, does that count lol

[Throwin Darts]

Cool site....



And remember, "If you fail to plan, you are planning to fail" - Benjamin Franklin

[Chief Big Toe]

wish i was smart about all this, but, not even close to understanding,,

[justletmein]

Appreciate all the tips, but this one is over my head

I am a big planner though, does that count lol

Stumped me at "portfolio" lolol

[eradicator]

I would prepare for a market crash in the near future with your investments.....

[Bro. Bill]

Stumped me at "portfolio" lolol

What did call me?

[Huntingfool]

I am a retired financial planner - another great site is firecalc.com - also free - these calculators are invaluable to estimate how long your money will last in retirement based on certain factors - inflation, spending, length of life, etc. Good stuff - I will check this new site out

[Mudslinger]

Dang glad I am retired and have everything set for hopefully a very comfortable retirement!

[eradicator]

I am a retired financial planner - another great site is firecalc.com - also free - these calculators are invaluable to estimate how long your money will last in retirement based on certain factors - inflation, spending, length of life, etc. Good stuff - I will check this new site out

I'm impressed this site can predict your future......

[Dejashoot]

I am a retired financial planner - another great site is firecalc.com - also free - these calculators are invaluable to estimate how long your money will last in retirement based on certain factors - inflation, spending, length of life, etc. Good stuff - I will check this new site out

I like Firecalc also.

[Monark]

I am a retired financial planner - another great site is firecalc.com - also free - these calculators are invaluable to estimate how long your money will last in retirement based on certain factors - inflation, spending, length of life, etc. Good stuff - I will check this new site out

You sound like someone with experience. I have only used Fidelity's calculators. Are those decent, reliable, outdated, believable? I have managed mine myself & done OK but at age 60, I'm thinking of using professionals.

[Monark]

I'm impressed this site can predict your future......

I don't think predicting the future is the point. Planning for the future is the point. I have a money plan to live to 95 and support myself so as not to be a burden on anyone. I may die tomorrow & my family can have my savings. I have buddies that in their earlier days said "Que Sera, Sera" but are now having second thoughts when it's too late to plan.

[Huntingfool]

You sound like someone with experience. I have only used Fidelity's calculators. Are those decent, reliable, outdated, believable? I have managed mine myself & done OK but at age 60, I'm thinking of using professionals.

IMO Fidelity is solid - every calculator is different but for me I just want the basics.

1. I have this amount of money saved
2. I have this many years until I plan to retire
3. I am contributing this amount of money each year towards my retirement
4. This is how much money I need to live on once I retire
5. This is how I invest my money - aggressive, moderate, conservative -
6. When should I start taking my social security (this is a huge decision so research well)

Once you figure out the answers to these questions you can plan for your future whether you are 30 years old or 60 years old.

If you are not the type of person who is into this type of planning and thought then no problem - go hire a financial planner who for a small fee can direct you through it all - someone like the OP of this thread

For me the beauty of our retirement years is to have comfort that I nor my wife will never run out of money to support the lifestyle we enjoy