Eric Siss, CFP®

In this Insight, we explain Monte Carlo analysis (also commonly called Monte Carlo simulation), how it works, and how it can be a powerful tool when projecting a family’s long-term financial future. 

You've put a great deal of effort into saving for retirement, and now you're ready to cash in. But wait, you need to determine how much you can consistently withdraw from your savings. Spending beyond your means can leave you with insufficient funds in your “golden years” and spending too little means you sacrificed doing things that you would have enjoyed.

Many parents support their teenage children in the traditional sense, by providing an allowance, chipping in on car payments, and so on. What most do not realize is that there is an extremely powerful option to help their children start thinking about investing and planning for their financial future.

When staring down a major financial decision, the first question we often ask ourselves is “what is the best way to meet this cost?” As we assess our situation, it is completely natural to look towards one of, if not the largest, numbers on your balance sheet, your 401(k). But how exactly do you access these dollars if the rules say you cannot, without penalty, until you are age 59 ½?