Pivot Point Advisors, LLC has Released a Free Retirement Calculator That Allows Users to Explore Best and Worst Case Retirement Scenarios

Pivot Point Advisors’ free Retirement Calculator provides a powerful tool to catalog expenses, income, assets and liabilities. The Calculator projects the user’s net worth into the future while taking the volatility of investment returns into account. This lets users explore best and worst case future scenarios, in addition to the expected case.

Bellaire, TX (PRWEB) January 11, 2006 -- Pivot Point Advisors offers a free Retirement Calculator that allows users to capture a detailed snapshot of their financial condition and use Monte Carlo simulations to explore possible retirement scenarios.

Most retirement calculators only analyze the expected case. Investments are projected into the future assuming some average rate of return. In reality, however, investment returns fluctuate sometimes by large amounts. The timing of these fluctuations can make a very significant difference in how comfortable, or indeed feasible, retirement will be.

Pivot Point Advisors’ Retirement Calculator provides a tool that helps users catalog all of their present and expected future expenses, sources of income, assets and liabilities. The software then simulates hundreds of possible future evolutions of the user’s net worth. Each simulated path uses a different sequence of historical returns to simulate future returns. The worst-case scenario will typically assume that some of the worst historical returns are repeated in the future. Conversely the best-case scenario will assume that some of the strongest historical returns occur again in the future.

The Retirement Calculator uses actual historical returns to simulate future returns. Asset classes include cash, stocks, bonds, and real estate broken down by census district. The latter is necessary since real estate returns differ sharply by region. For all asset classes, returns from the mid 1970s to 2004 provide the basis for the simulation.

The Retirement Calculator correctly incorporates Required Minimum Distribution from retirement accounts, their tax consequences, as well as taxation on income and investment gains. It provides a powerful tool for anyone who wants to analyze their financial situation in more detail than most available Retirement Calculators provide.

The software is available as a free download from www.pivotpointadvisors.com/retirementcalculator.asp. It is a Java application that runs on the user’s computer, ensuring that sensitive information never leaves the user’s computer. The current version of the software is a beta test version and Pivot Point Advisors is interested in feedback from users to help improve this tool.

Pivot Point Advisors, LLC was founded in 2004 by Martin Gremm, Ph.D., and Marc B. Schindler, CFP, to provide clients with transparent, rational, and liquid alternatives to mutual fund investments.

Prior to founding Pivot Point Advisors, Martin Gremm joined Koch Industries' Capital Markets Group in early 2001. He initiated Koch's internal long/short equity strategies and led the strategy development group and the trading desk. He holds a Ph.D. in Physics from Caltech and spent several years in academic positions at MIT and Princeton University before joining Koch. He has published numerous scientific papers that have been referenced hundreds of times by other authors.

Marc B. Schindler was a stock broker with several of the major brokerage houses. Most recently he was a First Vice President at RBC Dain Rauscher. He holds a B.S. from UT Austin and is a Certified Financial Planner (CFP). Mr. Schindler's professional experience spans 17 years and several market cycles.

Please visit www.pivotpointadvisors.com for more information.

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