Planning for retirement can feel like trying to solve a puzzle without knowing exactly how the pieces fit together. How much do you need to save? How can you ensure your savings last as long as you do? And what’s the best way to estimate if you’re on the right track? 

These are big questions with no one-size-fits-all answer. However, two prominent methods are often used to assess retirement readiness and guide financial planning decisions: the Funded Ratio and Monte Carlo simulations. Both approaches tackle the same question from different angles. Understanding how they work can empower you to make informed decisions for your financial future.  

This article breaks down these two methods, explains their strengths and weaknesses, and helps you decide which might be the best starting point for your retirement plan. 

What Is the Funded Ratio? 

The funded ratio is a straightforward way to measure whether you are

Keep reading this article on Retirement Searcher, Wade Pfau - Blog.

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