What are the four advantages of Monte Carlo simulation over deterministic approaches in personal retirement planning?
oh nice. hmm… from memory no cheating: monte carlo gives you a range of probabilities vs just one # better at dealing with taxes and how it affects returns better at chain linking returns together- so compounding effects better taken into consideration umm… phone a friend?
Graphical representation??
1, It more accurately portrays {A}/{B} trade-offs, 2, It can illustrate the trade-offs between the attainment of {C} and {D} goals, 3, It provides more realistic modeling of taxes, 4, It is better suited to assessing multiperiod effects.
I remember something about being able to incorporate probabilities.