Chapter 24
Mindles for the Financial Planning Client
The animation below shows an interactive retirement simulation which performs 1,000 trials per year for each of 20 years. In this example, the amount withdrawn per year is systematically increased. Note how the chance of depletion of funds increases, slowly at first, then rapidly as the rate of annual withdrawal is increased.
Animation of Figure 24.1
The graph in the middle of the screen displays the 10th, 50th and 90th percentiles of remaining cash by year. The histogram on the right displays the distribution of cash remaining in year 20. This model may be downloaded here from ProbabilityManagement.org.