Can I Retire Now? What Monte Carlo Analysis Can Tell You
One of the most common questions we hear at Cornerstone Wealth Strategies is: “Can I retire now?” To help answer that, we use a powerful tool called Monte Carlo analysis—a statistical method that runs 1,000 different market simulations to test how your retirement plan might perform under a variety of conditions.
This analysis helps estimate the likelihood of meeting your retirement goals by modeling income sources like Social Security, pensions, and investment withdrawals. For example, a plan with a 95% probability of success means it held up in 950 out of 1,000 simulated market scenarios. We can also model real-life decisions—like travel, large purchases, or long-term care needs—and see how they affect your plan.
IMPORTANT: The projections or other information generated by Monte Carlo analysis regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
At Cornerstone, retirement planning should be as dynamic as your life. Monte Carlo analysis is just one of the tools we use to help you make informed, confident decisions about your future.
