Portfolio Visualizer
https://www.portfoliovisualizer.com/
Statistical back-testing and Monte Carlo modeling can be useful to see if our planning assumptions and parameters are in the ballpark.
We are very careful to avoid even the slightest hint that we are attempting to predict future returns based upon historic figures. But for the sake of long-term planning, we have to start somewhere.
Having a baseline understanding of how an allocation might behave through market cycles can help us understand how our portfolios might behave under similar conditions.
The most important part of statistical modeling is making sure the client understands how we use this tool. It's not to predict, but to begin the conversation.
Please request access from the CCO.
Vanguard Portfolio Analytics ( X-Ray )
This is available to all registered IARs, simply sign up for a free account and when you're in, the portfolio tool is a robust Morningstar X-ray.
After logging in, click on Investments, then Portfolio Construction Tools, then Portfolio Analytics.
The Morningstar X-Ray is a beautiful way to dig into an allocation. If anyone would like help navigating and using this, please reach out, we can do a fun tutorial.