Counterparty risk in the form of investment fraud damages a retiree’s nest egg. Does fraud negatively impact portfolios that are both stock and bond-heavy equally? This study uses Monte Carlo analysis within the Trinity Study framework to determine the average reduction in portfolio success of...

This paper quantifies the effect of fraud shocks on retirement planning outcomes. By using Monte Carlo analysis similar to that in the Trinity Studies of 1998, 2011, and 2015, the present essay estimates fraud effect assumptions on an annual basis to measure the devastation that fraud has on a...