Monte Carlo Tax-Exempt Accumulation

Your Lifetime

Your Savings

Your Portfolio

Your Spending

Other Tools

Building Your Tax-Exempt Nest Egg

Portfolio returns are uncertain. Your range of outcomes is similar to a bell curve. This calculator shows you the chances of your portfolio growing to various amounts over your Savings Horizon (the 'Accumulation' stage of your financial plan).

Below enter your assumption about your portfolio's future annual returns, and we will find an Efficient Portfolio that can match your Assumed Return with the lowest risk. For safe planning, you might enter a high figure in your red Comfort Level Chance-of-Success box. For example, entering 70 will show you outcomes that there is at least a 70% chance of achieving. To learn more, click the drop-down links in the More Info box above.

This first input area is for 'irregular' withdrawals or deposits to your portfolio during your savings years. These are on top of your scheduled 'periodic' savings entered in the second input area below. If an entry only effects one year, enter that year in the 'Start' box and just leave the 'End' box empty. To remove our default examples, click Irregular Flows.

Irregular	Withdrawal	Amount in	Cash Flow Year		Adjust for
Cash Flows	or Deposit	Today's $$	Start	End	Inflation

The tax-exempt portion of your nest egg

Monte Carlo Simulation		Run scenarios
Assumed Portfolio Return	%	Future Annual Inflation	%
Current Tax-Exempt Balance		Future Additions Each Year
Your Savings Horizon	yrs	Each year Increase Additions by	%


Your Results	Chance of	Annual	Your Outcomes
	Success	Return	Future Dollars	Today's Dollars
Your Median Outcome >	50-50
Enter Your Comfort Level >	%
Change any of the entry boxes above, then click

Probabilities of Building Various Nest Eggs

1,000's of Future Dollars 1,000's of Today's Dollars

Higher Assumed Portfolio Returns give higher median outcomes (your 50-50 point), but also require riskier portfolios. You can gauge your downside risk by looking at your outcomes in the left side of the chart where there is a 95% or 75% chance of success; for example, 25% of the time you will end up below the 75% success level. Longer Investment Horizons temper risk as good and bad years average out.

To go on to the next calculator, click Your Portfolio

Your Lifetime

Your Savings

Your Portfolio

Your Spending

Other Tools

Top of Page | Back | For a copy , click

The text and calculators on this website are designed to be informational and educational tools only, and when used alone, do not constitute investment advice. The results presented by the calculators are hypothetical and may not reflect the actual growth of your own investments. The calculators are not intended to be a substitute for qualified professional advice. Before using these calculators, you must agree to their Terms of Use.