Procedure for solving the model
To generate the stochastic projections of net worth we follow these steps:
1. Set initial values:
2. Set expected return (μ), standard deviation (σ) and correlation parameters (ρ):
3. Generate a matrix of random numbers 
for i = 1, 2, ..., N and t = 1, 2, ..., T from the standard normal distribution and with the correlation structure 
.
4. Compute values of the asset and liability classes for each t = 1, 2, ..., T by solving the model iteratively. The formulas of these values are:
5. Compute net worth for each t = 1, 2, ..., T using the values derived in the fourth step:
6. We use Monte Carlo simulation and thus repeatedly simulate steps 3 to 5 to construct a frequency distribution of net worth.
