BOSTON, MA / ACCESSWIRE / July 20, 2022 / MaxiFi.com today announced the release of Upside Investing – a revolutionary way for Americans to invest in the stock market while setting and maintaining a minimum standard of living.
Putting a floor on living standards and taking the only upside risk from stock investing (playing the market safe) is Wall Street’s holy grail. The financial industry’s approach – the bucket approach – is deeply flawed. It cannot secure the income, let alone the standard of living.
Economist Laurence Kotlikoff spent two decades developing upside investing with engineers at Economic Security Planning, Inc. However, the underlying concept and usage is simple.
The process works as follows: First, users enter on MaxiFi how much they have on the market and how much will be added to their holdings. They can also tell MaxiFi when to start and stop converting stocks into safe assets, regardless of their eventual value.
Next, MaxiFi uses its patented consumption smoothing algorithm to create a sustainable spending plan that assumes the worst-case scenario – all stock investments are lost. This is the basic living standard floor.
Next, it uses Monte Carlo simulations to show the range of most likely increases in living standards that will be experienced when equities are converted into safe-haven assets – allowing for higher sustainable spending.
MaxiFi.com shows users the trade-off between their residential standard floor and residential standard top. A bottom floor means more upstairs. A higher floor means less head.
“We are very excited to launch our new Upside Investing mode on the MaxiFi platform,” said Kotlikoff. “What makes this approach to the stock market so useful and rewarding is that it essentially treats stocks like play money: you don’t spend potential winnings until you’ve left the casino with something in your pocket. This avoids the consequences of yield risks that burden conventional financial planning. Were too…