A Monte Carlo simulation in investing is like rolling the dice on potential outcomes for your investments. Instead of relying on past performance or gut feelings, Monte Carlo simulations use computer ...

Advisors and websites often show clients the results of large numbers of Monte Carlo simulations. It is hoped that clients will be calmed by pursuing avenues predicted to have a 90% chance of success.

Both Monte Carlo and decision tree analyses are powerful tools, but each has its particular strengths. Monte Carlo simulations are good for accounting for multiple risks occurring simultaneously.

Last week’s post about Monte Carlo simulations in financial planning sparked some interesting comments, so I thought a case study would help readers see how they work. Laura is 57 years old, single, ...

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. The content of this article is provided for information ...