Monte Carlo Simulations - What is considered a good result?
What would you consider a 'good' result for a Monte Carlo simulation for drawdown sustainability?
I've been asked to look at our drawdown review process and we currently have Cashcalc which has a useful Drawdown Monte Carlo simulator which I was thinking of using to provide a guide on sustainability.
However while the results are colour coded red, amber and green I can't find any guidance on what is considered 'good'.
Obviously a score of 80% is better than 60% but for clients a score of 80% might end up being a concern as they would be thinking about the 20% chance of the plan failing.
How does everybody deal with this?