P2P Lending / NFT Lending Forum

General Category => Investing - General (not P2P) => Topic started by: wendy823 on June 05, 2019, 11:00:00 PM

Title: Portfolio Analyzer - Monte Carlo Simulation Interpretations
Post by: wendy823 on June 05, 2019, 11:00:00 PM
Any input appreciated!

I've run two portfolios.  General input:  40 year time horizon, customized risk/return statistics, sequence of returns  first 10 years worst years .  First portfolio, no income in a 40 year time period.  Second portfolio, income based on life expectancy starting year 1.

Regarding Loss probabilities:
For a given return range (say >=2.5%), why would the probability of a loss be greater for a portfolio in which you were NOT taking income be HIGHER than for a portfolio in which you WERE taking the income.

Am I "mixing my metaphors", not comparing apples to apples???

Thank you!
Title: Portfolio Analyzer - Monte Carlo Simulation Interpretations
Post by: Jessica King on December 31, 1969, 06:00:00 PM
Yes, sounds complicated. Have you thought about diversifying further? Like with property crowdfunding, for example. You can invest in much more than just 2 assets for small amounts of money.