Therefore, this site is intended to provide a central resource library for planners interesting in learning more about Monte Carlo and other tools to deal with uncertainty. Please peruse the various sections of this web site. If you know of anything we should add, please let us know . Monte Carlo is a technique to calculate the uncertainty in a forecast of future events. It assumes you are using some kind of mathematical model.
Financial planning abounds with such models.
The model is assumed to be a good one. Monte Carlo won't turn a bad model into a good one. Instead of using a single value for each variable in a model, say investment returns, it uses many values. The outcomes are tabulated, and after a large number of trials, the forecast is shown not as a single value, but as a range of values. In other words, the uncertainty is explicit.