Why does the stoplight show a yellow or red light when the Probability of Success is greater than 90%?
Success is often difficult to define. The stoplight color is determined by two simulation outputs. The first is the probability of success, defined as the percent of simulation runs that didnt run out of money. The second output thats considered is the percentage of planned retirement spending that gets funded over the course of the plan. The logic behind this is that if you planned on having $75,000 per year, but only got $25,000 (so your nest-egg could be preserved), you wont be happy with the result. The spending percentage threshold for a green light is 90% or greater. For more about how the spending percentage is determined, see the documentation page on Spending Policies.
Related Questions
- Can I be issued with an expiation notice if I am speeding through a green or yellow (amber) traffic light, or only through a red traffic light?
- Why does the stoplight show a yellow or red light when the Ending Balance of my plan is so high?
- How does SmartBroker Pro compare with those red light, yellow light, green light systems?
