Timeline gives us a way to model market returns in every market condition through over 118 years of data. That’s more than 220,000 different historical scenarios and inflationary conditions. The output is completely bespoke to your individual portfolio.
How would your portfolio have performed through events such as the Great Depression of the 1920s, the Second World War, the Energy Crisis and 3-day work week of the mid 1970s, Black Monday in 1987, the Dot-Com Bubble, the Global Financial Crisis? We can show you. More importantly, would your portfolio have been able to deliver income to your family through these conditions? We can show you that too.
What if you’re worried about markets behaving differently in the future to how they have in the past? We can run Monte Carlo simulations – modelling sequences of market conditions which have never happened before.
We can show you the relevant risks inherent to your investment strategy:
- What are my chances of running out of money?
- How much of a legacy am I likely to leave?
- How likely is it that this asset allocation will deliver a successful outcome?
- What happens if I reduce or increase my exposure to equities?
We can build a dynamic withdrawal strategy with you to show you how to improve your chances of success:
- Should I link my withdrawals to inflation each year?
- Would it be sustainable to take more income at different times?
- Rather than taking more each year, what happens if I increase my income only after a year of positive return in the portfolio? How does that improve my success rate?
How does this differ from Cash Flow Modelling?
Voyant projects into the future using pre-agreed assumptions. It illustrates how the different parts of your asset base interact with each other through the accumulation and decumulation phase of your financial plan. It helps to bring your overall financial plan to life.
Timeline allows us to drill down into the detail of asset performance and computes your individual probability of success. It helps to inform our conversations about volatility, capacity for loss, and longevity risk (the likelihood of you outlasting your money).