It’s interesting how future assets like inheritance can impact current spending potential, something I hadn’t considered before this class. I can see how useful Maxifi Planner is for quantifying the impact of a future inheritance on living standard.
I found it very interesting that future assets, like inheritance, can be used to calculate the money you can spend today. Considering all the factors like that was over my head before this class. But after using MaxiFi, I have really found it interesting how many different factors, including this one, can come into play to increase your overall living standard.
Having software is critical for economics-based financial planning….Bet we will see other software platforms that adopt a living standard approach as more financial planners adopt this method.
What strategies can be used to ensure that an inheritance is used wisely, both for personal financial growth and for making a positive impact on others through giving?
When you have information about the timing and prospects for an inheritance you build the assumption into an economics-based financial plan. I can show you how to do that with MaxiFi Planner.
Im reading over the events and behaviors that trigger constraints on optimal consumption. I was under the impression that you could borrow against future assets. Little lost now. Are there any financial instruments or strategies available that allow individuals to leverage future income or inheritance for present-day consumption? Are there limitations to this, or risk involved?
Great question. My first look would be toward a Trust arrangement where I am declared as a beneficiary. Then a conversation with the Trust's "Trustee" is in order to see if loans can be exercised against trust assets.
Should you be careful about changing consumption today even if you’re receiving an inheritance down the line? More specifically if you don’t know the timeline.
Thank you for commenting Peter. Yes, you should.....One way to handle the timing uncertainty is to play with different inheritance dates that appear plausible. We call the technique a sensitivity analysis which is one way to approach decisions under uncertainty.
Great question. In economics-based financial planning, we care about living standard and when funds are made available. When funds are made available, the structure of how the funds are received, and the control of the funds distinguishes funds received by will or trust. Let me offer you a deeper explanation on the mechanics....At SMU, we have just begun an initiative using "Perplexity" which is an AI tool. I like the results vis-a-vis your question and how the information is cited. https://www.perplexity.ai/search/what-is-the-difference-between-lq0KXawXSta8sjdry_j6Ng?utm_source=backtoschool#locale=en-US
It’s interesting how future assets like inheritance can impact current spending potential, something I hadn’t considered before this class. I can see how useful Maxifi Planner is for quantifying the impact of a future inheritance on living standard.
I found it very interesting that future assets, like inheritance, can be used to calculate the money you can spend today. Considering all the factors like that was over my head before this class. But after using MaxiFi, I have really found it interesting how many different factors, including this one, can come into play to increase your overall living standard.
Having software is critical for economics-based financial planning….Bet we will see other software platforms that adopt a living standard approach as more financial planners adopt this method.
What strategies can be used to ensure that an inheritance is used wisely, both for personal financial growth and for making a positive impact on others through giving?
When you have information about the timing and prospects for an inheritance you build the assumption into an economics-based financial plan. I can show you how to do that with MaxiFi Planner.
Im reading over the events and behaviors that trigger constraints on optimal consumption. I was under the impression that you could borrow against future assets. Little lost now. Are there any financial instruments or strategies available that allow individuals to leverage future income or inheritance for present-day consumption? Are there limitations to this, or risk involved?
Great question. My first look would be toward a Trust arrangement where I am declared as a beneficiary. Then a conversation with the Trust's "Trustee" is in order to see if loans can be exercised against trust assets.
Should you be careful about changing consumption today even if you’re receiving an inheritance down the line? More specifically if you don’t know the timeline.
Thank you for commenting Peter. Yes, you should.....One way to handle the timing uncertainty is to play with different inheritance dates that appear plausible. We call the technique a sensitivity analysis which is one way to approach decisions under uncertainty.
What is the difference between inheriting assets through a will or a trust?
Great question. In economics-based financial planning, we care about living standard and when funds are made available. When funds are made available, the structure of how the funds are received, and the control of the funds distinguishes funds received by will or trust. Let me offer you a deeper explanation on the mechanics....At SMU, we have just begun an initiative using "Perplexity" which is an AI tool. I like the results vis-a-vis your question and how the information is cited. https://www.perplexity.ai/search/what-is-the-difference-between-lq0KXawXSta8sjdry_j6Ng?utm_source=backtoschool#locale=en-US
Just letting you know this link didn't work when I tried to pull it up! Might just be a me problem?
Sorry about that..Likely need an account..
Such a valuable approach you are sharing. TY for sharing today's module as viewable for non-paid viewers to catch a glimpse of what you offer!
Appreciate hearing from you @Mo__ Love to have you join my paids, too!