While there are no guarantees when it comes to investing, Tapparo Capital Management analyzes portfolio risk by using a sophisticated statistical technique called Monte Carlo simulation. This computer-aided modeling system:
Projects annual returns on your portfolio over the course of your expected lifetime.
Randomly varies the returns you’ll get every year to reflect market realities.
Simulates the performance you would see from your portfolio if you lived hundreds of lifetimes to try to model uncertainty of the financial markets.
Gives you a clear idea about how confident you can be that your portfolio will allow you to achieve your financial goals.
Monte Carlo quantifies the risk that you will not be able to afford all that you want in the future. No one can predict the future with certainty and statistics do not replace good judgment, but this technique assists in better understanding life’s financial realities, and we make it part of our practice.
Never Too Soon
Did you know that if you have been in the workforce for awhile, you can check your Social Security statement by accessing it online (https://www.ssa.gov/myaccount/)? It’s true.
If you are 60 years or older, a...