Chance of Success
We run 1,000 simulations based on your plan's projected cash flow, return and volatility assumptions — also known as a Monte Carlo simulation. Your chance of success is the percentage of these simulations in which you successfully make it to longevity age without running out of money.
What am I looking at?
At Boldin, we examine your plan in multiple ways, including plan projections as well as Monte Carlo analysis.
The Projected Savings is a linear projection based on your plan inputs. Most of the charts you see throughout the app are based on plan projections. The savings balances here will match the balances in the net worth chart lower on the dashboard.
Monte Carlo analysis is a statistical technique where we run multiple projections, randomly varying asset returns and inflation rates based on your growth rates and a normal distribution. We run 1,00 of these simulations and use the results to generate the probability of plan success. The 'Poor Outcome' you see here represents the 10th percentile of these simulations - or in other words, 90% of the simulations did as well or better than what you see here.
Financial Wellness
Our Financial Wellness Snapshot can help you gain valuable insight into your financial wellness.
Income vs Expenses
The Income vs. Expense graph on your Overview is a measure intended to provide a high level view of your plan. It's based on an average calculation from retirement age through longevity age and a 4% withdrawal from your assets.
Your estimated average retirement income is based on your earnings from Work, Passive, Social Security, Annuity and Pension sources from retirement age to longevity age plus a “safe” 4% savings drawdown rate. This does included any RMDs represented in your plan. The amount is shown in today’s dollars.
Your estimated average retirement expenses are based on the expenses you enter in your plan, under the inflation assumptions in your plan, and the other items we calculate such as income taxes and IRMAA given your plan specifics such as marital status, savings drawdowns, and deductible expenses.
If you're wondering how to see the annual details of your expenses, head over to Insights > Income and Expenses > Estimated Expenses
PLEASE NOTE:
The withdrawals in your plan differ from this calculation, as they are based upon your data, withdrawal strategy and withdrawal order. The numbers in the Income vs Expenses Chart on your Overview are provided as a means of assessing your standings based on an average calculation from retirement age through longevity age and a 4% withdrawal from your assets.
Net Worth
Your Net Worth is the total value of your assets minus your debts. This chart allows you to view changes to your Net Worth over time and provides a great overall view of your progress towards any legacy goals.
Coach Suggestions
Our Digital Coach constantly runs your plan against a series of rules and provides personal recommendations just for you. It's like a financial advisor is looking over your plan, checking your data, and making sure that you don’t miss any opportunities!
Optimizations
Your Overview may also include a couple of nudges from our AI. If we determine that your plan could benefit from a new Social Security or Roth Conversion strategy, we'll let you know. Look for these on your Overview and head over to our Explorers to learn how you can do better.
