What is the difference between using a financial calculator and GuidedChoice’s methodology?
One of the biggest and most critical differentiators is the fact that GuidedChoice uses a rigorous methodology, which includes applying simulations vs. relying on simple calculations.
The reality is, while neat, easy-to-use mathematical formulas exist for calculating known returns over time, the problem of estimating distributions of future wealth and income, which depend on unknown returns, does not involve a simple mathematical formula.
So instead of calculating, we simulate. We project asset class and portfolio returns, one month at a time, for decades into the future, to estimate what your eventual retirement income could be depending on different possible choices you might make pertaining to savings rates, investment risk, and age at retirement.
Learn more about our rigorous approach here.