Stress Test

After we have found a scenario we like, we use multiple tests to determine whether you would have fulfilled your goals under strenuous market conditions. These Stress Tests evaluate your proposed plan using:

1. Actual historical returns and inflation rates since 1970 versus average returns over the same period.
2. Actual historical returns and inflation rates in sequence, for multiple 60 year historical rolling periods.
3. Poor results in the first and second year of retirement followed by average historical returns.

The next step in our plan is Monte Carlo Analysis.