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April 30, 2001 WATS Version 1.11 Now ShippingThe Black Box and Portfolio Stressor programs have been added to WATS. Black Box introduces a new method of portfolio optimization based on a computational technique known as simulated annealing. Black Box finds optimal portfolios and maximum sustainable withdrawal rates given your 1) assets for consideration, 2) investment horizon, 3) historical success rate, 4) funding requirements and 5) ending value goal (don't go broke, maintain original corpus, or maintain inflation-adjusted corpus). Portfolio Stressor is similar to Black Box, except that asset allocation is an input to Portfolio Stressor rather than an output, as in Black Box. Portfolio Stressor finds the maximum sustainable withdrawal rate from any particular portfolio. The results from Portfolio Stressor are especially meaningful when compared to Black Box optimized portfolios because you can see just how far your portfolio is from optimal. Other enhances have been made, such as the ability to calculate success rates for accumulation scenarios as well as retirement scenarios, and more reporting and graphing options. |
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Copyright © 2000, 2004 Zunna, Inc. Last updated on 02/12/2004 |