Ibbotson Associates has added Monte Carlo simulations to version 2.0 of iPlan, its Web-based investment planning software. IPlan helps financial advisers develop investment plans and generate firm-branded proposals for those plans. Using the application, an adviser can gather data about a client's assets, assess the client's risk tolerance and build a strategic investment recommendation.
This upgraded version of iPlan takes advantage of the SEC's recent approval of Monte Carlo simulation tools for use with clients to demonstrate the probability of various investment outcomes. "Monte Carlo analysis can help advisers illustrate the probability of clients meeting their investment goals with various asset mixes under a range of scenarios," said Anne Redmond, Chicago-based Ibbotson's senior product manager, in a release. "The addition of this simulation function to iPlan allows advisers and clients to make even better investing decisions."