Feature Demo - Monte Carlo Simulation

Hi, I'm Mary, product designer at Bolden. Today I'm going to show you how to make the most of the Monte Carlo simulation in your plan. Let's dive in. The Monte Carlo simulation is a powerful forecasting tool used in financial planning. Instead of assuming a single rate of return for your investments, it runs thousands of possible scenarios to estimate your financial future. Think of it like rolling the dice over and over again. Each roll represents a different market condition. By running thousands of simulations, you can calculate the likelih of reaching your goals based on different market conditions. The result? A clearer picture of your financial future backed by data, not just guesswork. So why does this matter to you? A Monte Carlo simulation feature provides confidence in planning. See the probability of success for your financial plan. It provides risk awareness. Understand how market volatility could impact your future. It supports better decision making. Adjust savings, spending or investment strategies proactively. And it provides personalized scenarios tests different financial decisions from retiring early to changing investment strategies. Unlike traditional calculators that assume steady growth, our Monte Carlo simulation takes into consideration the ups and downs of forecasted market behavior. What makes our Monte Carlo simulation different? First, it's built into your financial plan so you don't need to use separate tools. It's easy to interpret, providing clear probability of results instead of complex math. And it allows you to adjust inputs in real time, change savings, income or investment allocations, and instantly see the impact. Now let's walk through how to use the Monte Carlo in your financial plan. Let's say you'd like to see how likely you are to afford your retirement lifestyle without running out of money through longevity, while also meeting your legacy goal. First, enter your retirement plan. Details include your retirement age, Income sources and planned expenses. Next, set your investment portfolio. Details. Include asset allocation for your accounts to model how potential market returns will impact your savings. Now let's run the Monte Carlo simulation. The system will generate thousands of possible market return scenarios and show the percentage of scenarios where you successfully achieve your financial goal of not running out of money and achieving your legacy. Hover over the chart to uncover different possible futures for your plan. The 90th percentile shows a best case or optimistic outcome where markets thrive and your portfolio grows. The 50th percentile represents the most likely path or median outcome based on historical Trends. And the 10th percentile shows a worst case scenario or pessimistic outcome showing how your plan holds up in changing times. Explore the simulation to see how different market conditions could shape your financial outcomes. Now let's stress test your plan. Use the Assumptions panel to quickly change the parameters of the simulation to test your plan in different scenarios. Assess your Monte Collar results under the pessimistic average and optimistic assumptions in order to ensure that you have properly considered the uncertain future. Test different retirement ages, withdraw strategies and budget scenarios to see how they impact the probability of success. With the Monte Carlo simulation you get more than just a projection. You get financial clarity. Run your own analysis today and make informed decisions for a confident future. Thank you for joining me today to explore a Monte Carlo feature. We're excited to continue bringing you new features that will help you take control of your financial journey. If you find this demo helpful, give this video a thumbs up and subscribe to our channel for updates on the latest features and tips to make the most of Bolden. If you have any questions or feedback, please leave us a comment down below. We'd love to hear from you. Here's to planning ahead.