Hi
Several in this forum pointed out that the original post Two Fund Portfolio Asset Allocation was too dense.
Following your comments I am posting a simpler version of the document. Those interested in the math or more details can refer to the initial posting.
The focus of the document is how to “quantitively” determine how the many variables and assumptions influence what one may consider as a proper Asset Allocation and Glide Path through Monte Carlo Simulation based on investor provided parameters.
The picture below illustrate results from the Monte Carlo simulation spreadsheet for a particular investor case and shows what factors are considered when determining the success rate. The results in particular are valid for the investor current age and should be conducted routinely to account for life changes, past performance and other changes in the important variables.
![Image]()
I would like now to share the document with this group. Please let me know if you have any find any mistakes or incorrect information on the document. Looking forward to your comments.
mgp
![Image]()
![Image]()
![Image]()
Several in this forum pointed out that the original post Two Fund Portfolio Asset Allocation was too dense.
Following your comments I am posting a simpler version of the document. Those interested in the math or more details can refer to the initial posting.
The focus of the document is how to “quantitively” determine how the many variables and assumptions influence what one may consider as a proper Asset Allocation and Glide Path through Monte Carlo Simulation based on investor provided parameters.
The picture below illustrate results from the Monte Carlo simulation spreadsheet for a particular investor case and shows what factors are considered when determining the success rate. The results in particular are valid for the investor current age and should be conducted routinely to account for life changes, past performance and other changes in the important variables.
I would like now to share the document with this group. Please let me know if you have any find any mistakes or incorrect information on the document. Looking forward to your comments.
mgp
Statistics: Posted by mgp — Sat Jan 13, 2024 2:46 pm — Replies 0 — Views 103