Understanding These Results

This Monte Carlo simulation models a range of potential future outcomes for your portfolio/asset based on the expected return, volatility, and time horizon you provided. It assumes that annual returns follow a log-normal distribution (common in financial modeling).

• Percentiles (e.g., 5th, 95th): The 5th percentile shows a value that your portfolio has a 5% chance of being at or below. Conversely, the 95th percentile shows a value it has a 5% chance of being at or above (or 95% chance of being at or below).
• Probability of Loss: This is the percentage of simulated trials where the ending portfolio value was less than your initial investment.
• Assumptions are Key: The results are highly dependent on the accuracy of your "Expected Annual Return" and "Expected Annual Volatility" inputs. These are often based on historical data or future projections and are not guarantees.
• Simplification: This simulation uses annual time steps and does not account for taxes, fees, contributions, or withdrawals during the simulation period.