Monte Carlo Affects Mortality Setting to be Discontinued

Due to low usage and lack of transparent results, we will be discontinuing the randomized death option within the Monte Carlo setting on November 20. The lack of transparent results made it difficult for advisors to determine the assessed longevity and adequately convey the results to clients. We plan to build a more innovative way to present this information in the future.

The setting is currently located in Advanced Facts > Assumptions > Miscellaneous > Retirement and Death: Monte Carlo Affects Mortality.

Alternative to this Setting

If you are currently using this setting, we recommend creating a plan using the steps below for a more transparent analysis that will explicitly demonstrate the financial and planning effects of a wide range of longevity scenarios, including the client passing away prematurely and the spouse living to an expected life expectancy.

1. Create a Scenario and change the death age of either the client or the spouse to their current age while using the original life expectancy for the survivor.

2. View the Monte Carlo legacy report using the Scenario you created or use Decision Center Monte Carlo and select the scenario you created.

3. View the Monte Carlo legacy report or the Decision Center Monte Carlo using the original Base Facts and compare the results. Comparing to the Base Facts, you can demonstrate the financial risks of a premature death to the client using this approach.

Questions? Give us a call at 888-362-8482 or send us an email.