Monte Carlo Simulation
A mathematical technique used to estimate the probability of various outcomes in a process that cannot easily be predicted due to the intervention of random variables. In Cedarsure, we run thousands of iterations to see how your portfolio reacts to different market "paths."
Sequence of Returns Risk
The danger that the timing of market withdrawals or downturns will significantly impact the longevity of a portfolio. Withdrawing money during a market "down" year early in retirement is far more damaging than doing so later.
Spending Solver
A proprietary optimization tool that calculates the exact annual spending adjustment required to move your plan from its current success probability to a target "safe zone" (typically 85% or higher).
Deterministic Planning
A "straight-line" calculation that assumes a fixed rate of return and consistent inflation. While useful for establishing a baseline, Cedarsure always recommends layering probabilistic (Monte Carlo) analysis on top of deterministic plans.
Sovereign Privacy
The Cedarsure principle that users should maintain total control over their data. By utilizing manual entry rather than bank-linking, we ensure your financial data remains an anonymous mathematical input rather than a harvestable personal asset.
Glide Path
The formula that defines how an investment portfolio's asset allocation becomes more conservative over time (e.g., shifting from stocks to bonds as you approach your retirement date).
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