If you are using a simple Monte Carlo analysis to analyze your retirement projections, you could be setting yourself up for a HUGE disaster. Worst off, is that this disaster may occur when it’s just too late to change anything!
Why is this? Because Monte Carlo analysis doesn’t include investment fees or taxes.
As I stated repeatedly, investment fees and taxes are the biggest detriments to your portfolio strength.
So, consider using this FREE tool at Firecalc.com. While it won’t give us insight into taxes you may pay, it most certainly can allow you to adjust your portfolio for the fees you pay.
In this example I show what a retirement portfolio with a .18% looks like as compared to a more typical portfolio with a fee of 1.50%.
It’s not a pretty comparison. Not in the least.
Factor in taxes and it’s going to get even uglier. When it comes to retirement planning, ugly is not your friend; we want the prom queen. The easiest way to dance with her? Reduce fees and taxes!
For the video on this topic click here.