The Monte Carlo simulation randomizes returns 1000 times per year, through the life of the plan. At the end of the plan, we find the values that are the 10th, 50th, and 90th percentile. In other words, if all 1000 portfolio values were placed into ranked order, with #1 being the least value and #1000 being the highest value, then the 10th percentile would be the #100 portfolio, while the 50th percentile would be the 500th portfolio, and the 90th percentile would be the 900th portfolio. From there, we isolate the simulations that result in those final ending portfolio percentile values.
On Nexus, once you have created a Financial Profile and at least one Proposal Plan for a client, you can toggle between the Financial Profile and Proposal Plan cumulative wealth charts.
