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BOSTON, MA / ACCESSWIRE / July 20, 2022 / MaxiFi.com announced today the release of Upside Investing – a revolutionary way for Americans to invest in the stock market while setting and maintaining a living-standard floor.
Establishing a living-standard floor and experiencing only upside risk from stock investing (safely playing the market) is Wall Street’s Holy Grail. The financial industry’s approximation – the bucketing approach – is deeply flawed. It can’t preserve incomes, let alone living standards.
Economist Laurence Kotlikoff, alongside engineers at Economic Security Planning, Inc. spent two decades developing Upside Investing. Yet its underlying concept and use are simple.
The process works as follows: first, users input on MaxiFi how much they have in the market and how much will be added to their holdings. They can also tell MaxiFi when they will start and stop converting stocks, whatever their eventual value, into safe assets.
Next, MaxiFi uses its patented consumption-smoothing algorithm to create a sustainable spending plan assuming the worst-case scenario – all stock investments are lost. This is the base living-standard floor.
Next, it uses Monte Carlo simulations to show the range of highly likely increases to living-standard floors experienced as stocks are converted to safe assets – allowing for higher sustainable spending.
MaxiFi.com shows users the trade-off between their living-standard floor and their living-standard upside. A lower floor spells more upside. A higher floor spells less upside.
“We are thrilled to introduce our new Upside Investing mode to the MaxiFi platform,” said Kotlikoff. “What makes this approach to the stock market so sensible and rewarding is that it essentially treats stocks like gambling money: You don’t spend any potential winnings until you’ve left the casino with something in your pocket. This avoids the sequence of return risk, which plagues standard financial planning. We’re also seeing that many households can have a very high upside potential with a relatively small investment in the market.”
“We look forward to watching Upside Investing help all Americans, rich and poor, old and young, preserve their living standards, while enjoying the fruits of the stock market – a highly risky casino, but one with marvelous odds if you don’t count your chickens before they’re hatched.”
Since its debut in 2019, MaxiFi has been featured in the New York Times, The Wall Street Journal, Barron’s, CNBC, Yahoo, The Washington Post, Market Watch, and many others.
More About Economic Security Planning, Inc.
Kotlikoff founded Economic Security Planning, Inc. in 1993 to provide economics-based financial planning to the general public and financial planners for use with their clients. The company’s three products are maxifi.com, maximizemysocialsecurity.com, and The Fiscal Analyzer, a research tool that uses MaxiFi’s computation engine. Over the years the company has received funding from Boston University, the National Institute of Aging, the National Center for Policy Analysis, the Searle Family Trust, the Sloan Foundation, and the Federal Reserve Bank of Atlanta.
SOURCE: Intelligent Relations
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