Average Final Estate Size

"Average" Final Estate Size:

TIP$TER’s simulation engine calculates the average final estate size, again based upon the investor's life expectancy and – if the investor has a spouse – his/her spouse’s life expectancy.

If the investor or investor's spouse lives past normal life expectancies, then their final estate size would likely be lower than this estimate.

TIP$TER calculates the average final estate size by (1) computing the average, across all of the thousands of simulations, of the simulated sizes of the portfolio for each year of the planned portfolio duration, (2) multiplying each average by the incremental probability that both the investor and his or her spouse (if any) will have passed away by that year, (3) and summing these weighted averages together.

The “Average Final Estate Size” should not be confused with the “median” simulated final estate size. The “Average” is significantly skewed upward by the highly-ranked simulations.