As employers move from defined-benefit to defined-contribution plans, and
employees increasingly rely on IRA's and 401k's instead of traditional
pensions, it has never been more important for individuals and their
financial advisors to carefully and realistically plan for retirement.
Such a plan must incorporate appropriate asset allocation, realistic
savings and spending projections, as well as the tax situation of the
individual. Most importantly, the plan must account for the uncertainty of
future returns on investments.
Wagner Math Finance introduced
in 1998 as a ground breaking financial
planning tool that uses the technique of
Monte Carlo simulation
to model the uncertainty of investment returns. Instead of naively assuming
that investments grow at the same pre-set rates year after year, RSP acts out
thousands of separate understandings of the possible outcomes, and calculates
the probability of clients achieving their goals.
Incorporating standard methodologies from mathematical finance, as well as a
faithful tax model and the flexibility to handle the most diverse of
situations, RSP remains a leader in using Monte Carlo methodologies in