Simulates your financial portfolio thousands of times across decades to determine your likelihood of running out of money before you die.
- Set your inflation mean and stddev
- Define your various asset classes and their means and stddevs
- Create your portfolio of assets
- Enter your tax rates
- Decide how much you need to distribute each year to live on
- Decide if you will rebalance each year
- Enter how long you expect to live
- Enter the number of simulations you want to run
- View your results
- Your average ending portfolio value when you died
- The number of simulations where you ran out of money before you died
- The percentage likelihood that you will run out of money before you die
- The average distribution you took out your portfolio each year
cd burn_plan
bundle
vi bin/burnit.rb # edit with your own facts and assumptions
ruby -Ilib bin/burnit.rb