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Taylor Nelsen's avatar

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 😅

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Ellen Forrest's avatar

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.

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Robert Puelz's avatar

You are taking your readers to the state of the art! Well done.

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Ellen Forrest's avatar

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!

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Gabe Sorensen's avatar

I’m a New Zealander. Have a look at https://sorted.org.nz/ which is a government website.

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Taylor Nelsen's avatar

Thanks! Reminds me of some of the CFPB resources.

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Erica's avatar

Is there a specific economics-based planner you used?

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Taylor Nelsen's avatar

I've been using Maxifi. Do you have experience with other tools that you would recommend?

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