I've revisited my Monte Carlo projections recently and once again come to the question of what assumptions I should use. I'm setting up a testing scheme where I can run simulations on a withdrawal strategy that uses inflation to help determine the withdrawal amount. The hardest thing is deciding what the standard deviation should be for both the investment returns but also the CPI.
For the investments, I'm using 10.5% SD. However I'm not sure what SD to use for inflation. Currently, I'm using 2%.
Anyone had any suggestions or thoughts.
For the investments, I'm using 10.5% SD. However I'm not sure what SD to use for inflation. Currently, I'm using 2%.
Anyone had any suggestions or thoughts.
Statistics: Posted by WeakOldGuy — Thu Nov 07, 2024 1:03 am — Replies 0 — Views 32