Executive Summary:
The
Otar Retirement Calculator calculates an individual’s retirement asset values
based on market history since 1900. What makes it different from other
retirement calculators is that it does not require an assumed average portfolio
growth rate, average inflation or any Monte Carlo simulation.
Instead of presenting a "forecast" of a client's future financial picture based on your assumptions, Otar Retirement Calculator presents an "aftcast" of client's potential outcomes based on actual black swan events of the history.
Benefits for the investor:
It helps the user visualize realistic outcomes that are not available with conventional retirement calculators.
It
allows any mix of equities, nominal bonds, inflation-indexed bonds and cash
in the portfolio.
Benefits for the advisor:
It produces realistic and credible retirement planning strategies independent of client's (or advisor's) high expectations. Therefore, it increases client's respect and confidence for the competence of his/her advisor.
When you forecast an "average" portfolio growth rate and inflation, your client will more or less expect that performance year-after-year. With the Otar Retirement Calculator, there is no prediction or assumption, only a factual presentation of all historic outcomes. These outcomes include a range of lucky and unlucky outcomes. Let your client decide how much to save, when to retire, how much to spend to improve the odds of successful retirement. Say good-bye to the business of crystal-ball gazing.
It may reduce the potential for future litigation as a result of optimistic projections that are given to clients.
Background and History:
Its
developer, Jim C. Otar, is a retired professional engineer in Thornhill, Canada. He has
been applying his technical background to research retirement and investment
planning issues since 1996. He developed Otar Retirement Calculator while he was
writing his book “High Expectations & False Dreams – One Hundred Years
of Stock Market History Applied to Retirement Planning” in year 2000. He
received CFP-Board Article Awards in recognition of his meritorious financial
planning articles both in 2001 and in 2002. All his articles
and whitepapers are freely
available on this website.
©
Copyright 2001-2024 Retirementoptimizer.com Inc.. All Rights
Reserved.
You may not modify, copy, reproduce, publish, upload, post, transmit,
distribute, or commercially exploit in any way any of this site content,
including code and software. Unauthorized downloading, re-transmission, storage
in any medium, copying, redistribution, or republication for any purpose is
strictly prohibited without the written permission of Retirementoptimizer.com
Inc..