This is a Python application allowing users to do financial planning by calculating his retirement portfolio including crypto, stocks & bond and also use simulation tools to forcast future performance of the portfolio (10 years & 30 years).
The application works by extracting crypo/stock/bond prices by using Alpaca API to evaluate current portfilio valie. Then use monte carlo similuation to forcast the stock/bond portfolio valie in 10 years /30 years by applying past 3 years performance (SPY & AGG with different percentage)
This project leverages python 3.7 +, pandas, numpy, pathlib
Before running the application, first make sure below libaries are installed
pip install pandas
pip install numpyAlerternatively you can simply just install requirement file included in this folder
pip install -r requirement.txtStep 1: run financial_planning_tools.ipynb
python financial_planning_tools.ipynbStep 2: Evaluate the Cryptocurrency Wallet by Using the Requests Library0
Step 3: Evaluate the Stock and Bond Holdings by Using the Alpaca SDK
Step 4: Plot the total value of the member's portfolio (crypto and stock/bond) in a pie chart
Step 5: run and Visualize the 30-year Monte Carlo simulation on Stock/bond
Step 6: Visualize the probability distribution of the 30-year Monte Carlo simulation
Step 6: repeat same process of step 5 & 6 for 10 Year
Conclution:
looking at simulation results, even 80% in stocks & 20% in bond, the lower 95% confidence internal is only $70K, which is not likely to be enough to retire in 10 years
Brought to you by TaoNYC. connorchen7@gmail.com
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