F.I.R.E. Monte Carlo Simulation Using Python

#Programming #Python #finance #stocks #portfolio Description: Simulate your F.I.R.E. (Financial Independence, Retire Early) portfolio using Monte Carlo simulation and the 4% rule. This Python program is a retirement portfolio stress test designed for FIRE (Financial Independence, Retire Early) planning. It uses Monte Carlo simulation to model 1,000 possible market scenarios over a 30-year retirement horizon, helping users assess whether their portfolio can sustain annual withdrawals without running out of money. Features: -Monte Carlo engine: Runs 1,000 randomized simulations over 30 years. -Annual portfolio rebalancing: Applies weighted returns from stocks, bonds, and cash. -Spending drawdown logic: Deducts fixed annual withdrawals from portfolio balance. -Early termination: Stops simulation if portfolio hits zero before 30 years. Realistic assumptions: -Stocks: 8% return, 15% volatility -Bonds: 3% return, 5% volatility -Cash: 1% return, 1% volatility Disclaimer: The material in this video is purely for educational purposes and should not be taken as professional investment advice. Invest at your own discretion. Links: 4% Rule: https://www.investopedia.com/terms/f/four-percent-rule.asp Trinity Study: https://en.wikipedia.org/wiki/Trinity_study Trinity Study Simulation: https://bestinterest.blog/updated-trinity-study-simulation Note: In the video I misspelled withdrawal rate, but hopefully that doesn't bother anyone or stop you from enjoying the video :) https://medium.com/@randerson112358/will-your-portfolio-survive-retirement-create-a-monte-carlo-fire-simulation-in-python-83d3325e9d40 ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ ⭐Please Subscribe !⭐ ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ 🐦🔥🐤 Support The Channel🐤🔥🐦 ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ ⭐Get the code and data sets or just support the channel by becoming a supporter on Patreon: ►https://www.patreon.com/computerscience ⭐Website: ►http://everythingcomputerscience.com/ ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ 📚Helpful Python Programming Books📚 ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ ► Hands-On Machine Learning with Scikit-Learn and TensorFlow: https://amzn.to/2AD1axD ► Learning Python: https://amzn.to/3dQGrEB ►Head First Python: https://amzn.to/3fUxDiO ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ 📚Helpful Financial Books📚 ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ 🌟Stock Market Investing Books: ✔️The Bogleheads' Guide to Investing https://amzn.to/3s0icxA ✔️The Intelligent Investor https://amzn.to/34Mj7t1 ✔️A Random Walk Down Wall Street https://amzn.to/3Bv0ghW 🌟Money Mindset Books ✔️Rich Dad Poor Dad: https://amzn.to/3rZW6eE ✔️Get Good With Money: Ten Simple Steps To Becoming Financially Whole: https://amzn.to/3I1UXc1