Why Does Monte Carlo Show a 0% Success Probability?
Why does my Monte Carlo simulation show a 0% success probability when I still have money in my retirement accounts?
WealthTrace can show a 0% Monte Carlo success probability when your taxable funds run out before you can access your qualified, tax-deferred retirement accounts.
For example, if you retire before age 59½ and your taxable accounts are depleted, WealthTrace considers your plan unsuccessful even if you have significant funds remaining in your IRA or 401(k).
A 0% success probability does not mean you have run out of money entirely. It indicates that your taxable funds are depleted before your retirement funds are available to cover your expenses.
How to Resolve This
You can allow early withdrawals from your qualified retirement accounts if your taxable funds run out.
- Click on your qualified investment account to open its Account Settings & Assumptions.
- Select Use of Funds Rules.
- Set the date when funds from the account are allowed to be used.
Setting an earlier withdrawal date allows WealthTrace to access these funds before age 59½ when necessary to cover expenses.
