Question Regarding "MC SPENDING BEHAVIOR & PORTFOLIO CHARACTERISTICS" Table
I have a quick question regarding the table "MONTE CARLO SPENDING BEHAVIOR & PORTFOLIO CHARACTERISTICS" in the PDF Reports. (I am running version 2.20.38)
Does this table reflect the values derived from the Monte Carlo simulation? The table appears in the "Inputs and Assumptions" section of the report so one would be led to believe this is an input to ESPlanner rather than an output of the simulation though I suspect this table is really a calculated output.
I am seeing Mean Real Rates of return that are double the hand calculated mean of my portfolio. I assume this is because of the high variance of a couple of the assets in the portfolio as explained in another thread on the Forum ( http://www.esplanner.com/forum/effect-high-variance-return-calculated-mc ).
The asset income in the Details section of the report show reasonable values given my portfolio. The return rates shown there are about half of the mean hand calculated returns since I am running a Cautious Spending Behavior. The returns in the details are only about one fourth of the value reported in the "MONTE CARLO SPENDING BEHAVIOR & PORTFOLIO CHARACTERISTICS" table in the input section of the report.
Does this make sense? Can I just ignore the high value return rate shown in the "Inputs and Assumptions" section of the report as being too skewed by the statistics of the MC simulation when using high variance assets?