MCRetire: Retirement Calculator
Monte Carlo Simulator

Current version

MCRetire 1.3 (download file MC1322.exe)

• Updated for Windows 10
• Free with purchase of VisualMvo or MvoPlus
• This is a free upgrade for owners of MCRetire 1.0 through 1.2
• Existing owners: use your serial number to download the latest version
• New customers: obtain serial number for free 30-day trial
• View sample screen

Description

MCRetire (Monte Carlo Retire) is a simulation program that will help you decide whether your retirement assets are adequate for your needs. Unlike many retirement calculators, MCRetire takes into account the fact that the return of your investment will fluctuate during the retirement period.

Since there is no formula that describes the success probability of a retirement strategy in the presence of return fluctuations, MCRetire attacks the problem using "Monte Carlo simulation." In this technique, multiple randomly selected realizations (typically thousands) are generated, and the probability of success is estimated by comparing the number of successful realizations to the total number.

Features

• Runs on all Windows versions, from Windows 95 through Windows 10, including 64-bit versions
• Easy to use Windows interface
• Calculates success probability for given principal and withdrawal
• Calculates allowed withdrawal for given principal and success probability
• Calculates required principal for given withdrawal and success probability
• Optional adjustment model for the effects of inflation, expenses and taxes
• Display of individual realizations from the Monte Carlo sample

Reference

For additional material on retirement strategies with varying returns, see "The Retirement Calculator From Hell - Part II" in the Winter 2001 issue of William Bernstein's online journal Efficient Frontier.