How To Set Up Monte Carlo Runs

Using Monte Carlo simulations is an ideal way to model the unpredictable outcomes of different investment strategies. With regards to the Real Estate Financial Planner™ it allows us to study how a Scenario (collection of Accounts, Properties, Rules, and Goals) responds to randomly generated inputs for variables such as interest rate, appreciation, inflation, and rate of return for stocks, bonds, or other investments.

IMPORTANT NOTE: Monte Carlo is only available to Copper Plan Members.

Open The Scenario

First, from the Scenarios page select the Scenario on which you want to run Monte Carlo. Click the title of the Scenario to open it and scroll down past the Scenario Description to Number of Monte Carlo Simulations to Run.

Enter the number of Monte Carlo simulations you would like to run and then hit the Save button. Next, click the orange Run Analysis button underneath the title of the Scenario.

You will be redirected to the Scenarios page where you can see that the Monte Carlo Scenario is queued to process.

Once the status bar says “Complete” you can open the Charts or review the Blueprint™.

Monte Carlo

You can read more about Monte Carlo simulations by checking out the blog posts below.