You have to optimize for the present and the future! That's the idea behind consumption smoothing. You can always set goals, but the baseline assumption and goal is not just one end number. It does make the modeling a little more complicated 😅
I really like the concept though! It inspires faith in the ability to fully live your current life with trust that your future stability will remain intact.
Traditional financial planning operates on the assumption that individuals must optimize for a distant, uncertain future rather than immediate well-being. If traditional financial planning relies heavily on Monte Carlo simulations, could alternative models—such as stochastic dynamic programming or agent-based modeling—offer better predictive and prescriptive insights for individual financial planning? I am interested to try Maxifi. Thank you for the recommendation and this post!
You have to optimize for the present and the future! That's the idea behind consumption smoothing. You can always set goals, but the baseline assumption and goal is not just one end number. It does make the modeling a little more complicated 😅
I really like the concept though! It inspires faith in the ability to fully live your current life with trust that your future stability will remain intact.
You are taking your readers to the state of the art! Well done.
Traditional financial planning operates on the assumption that individuals must optimize for a distant, uncertain future rather than immediate well-being. If traditional financial planning relies heavily on Monte Carlo simulations, could alternative models—such as stochastic dynamic programming or agent-based modeling—offer better predictive and prescriptive insights for individual financial planning? I am interested to try Maxifi. Thank you for the recommendation and this post!
I’m a New Zealander. Have a look at https://sorted.org.nz/ which is a government website.
Thanks! Reminds me of some of the CFPB resources.
Is there a specific economics-based planner you used?
I've been using Maxifi. Do you have experience with other tools that you would recommend?