Link of the Month: T. Rowe Price's Retirement Calculator

I view actively managed stock funds with about the same attitude as a vegetarian on a field trip to an abattoir. But I’ll admit to a soft spot for T. Rowe Price: their stock and bond portfolios are paragons of style and investment-policy consistency, and their commitment to asset-class-based investing, exemplary. Further, T. Rowe Price's advertising is intelligent and low-key. There’s also a personal connection—almost a decade ago they provided me with my very first database of asset-class returns. So I’m pleased to link to their excellent retirement calculator, which offers small investors a glimpse of Monte Carlo payout calculations. Take a look.

Also, Richard Pritz has made avaliable an Excel spreadsheet that takes the Markowitz inputs for a two-asset stock/bond portfolio and outputs Monte Carlo survival probabilities. Like any Monte Carlo Excel file, it's slow. But hey, the price is right. If you have any questions, contact Richard.

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