Summary

This chapter concludes our core capabilities for creating an investment plan with our Robo-advisor. We started by looking at some basic calculations for projecting how our investments might appreciate in the future. From there, we combined several formulas to come up with a reusable method that accounts for ongoing monthly deposits.

We moved on to visualizing our projections to communicate potential investment outcomes. Then we put together all our core capabilities from earlier chapters to create a new Goal, answer risk tolerance and risk capacity questions, create a model portfolio, and map our risk score to a model portfolio.

With our new Goal, we looked at ways to estimate the probability of achieving our target Goal amount in our planned time horizon. Finally, we built some additional methods to help us calculate Goal probability and find appropriate financial parameters for us to achieve our Goal.

By the end of the chapter, you will have learned hands-on how...