Finance | Insight Maker

A simple budget planning system. What additional complexities can you add?

Clone of ISD Savings Plan

Vivien

A simple budget planning system. What additional complexities can you add?

Clone of ISD Savings Plan

Lea Frentzen

A simple budget planning system. What additional complexities can you add?

Clone of ISD Savings Plan

Frank de Jong

A simple budget planning system. What additional complexities can you add?

Clone of ISD Savings Plan

Simon Mueller-Landsvik

A simple budget planning system. What additional complexities can you add?

Clone of ISD Savings Plan

Leonard Kosub

Format: Given pre-conditions when independent variables(s) then dependent variable

Given Earnings Decline (0.25), Spending Variance (55), Initial Investment (500) and Rate of Return (RandNormal(0.06, 0.12)) when one of these independent variables change then how sensitive is Investment (22) over a 30 year time period (-1,000)

H1: if you Earn more then Investment will last much longer => rejected

H2: if you Spend less then Investment will last much longer => accepted

H3: if your Initial Investment is higher then Investment will last much longer => accepted

H4: if you reduce your Spend when Investments are declining then Investment will last much longer => accepted

Given Earnings Decline (0.25), Spending Variance (55), Initial Investment (500) and Rate of Return (RandNormal(0.06, 0.12)) when one of these independent variables are optimised then Investment will last exactly 30 years by minimising the absolute investment gap

H1: if you set an appropriate Spending Base then remaining Investment is 0 => rejected

H2: if you set an appropriate Spending Reduction then remaining Investment is 0 => rejected

Source for investment returns: https://seekingalpha.com/article/3896226-90-year-history-of-capital-market-returns-and-risks

Clone of Wealth Management when Retiring