What’s current status?
Our R package R4GoodPersonalFinances is available on CRAN for the last few months. The previous versions has been downloaded more that 500 times already! Recently, we have released v1.0.0 version of the package.
What’s new in version 1.0.0?
This major release introduces probably first in the world (open-sourced) implementation of a new multilevel life-cycle modeling of a household finances. It connects life-cycle models with single-period net-worth Markowitz optimization models and allows for high degree of personalization. The implementation is based on a novel theoretical framework, described by Thomas M. Idzorek and Paul D. Kaplan in Lifetime Financial Advice: A Personalized Optimal Multilevel Approach (2024).
What to expect next?
In this release, we’ve added many new functions. We know they might be difficult to use without proper explanation, so we’re now focusing on writing blog posts that demonstrate how to use them with simple examples.
The ultimate goal is to provide concrete, actionable insights into possible optimal decisions—for example, how much discretionary spending is appropriate, or what the optimal asset allocation is for a household, taking into account human capital, expected income, and liabilities (non-discretionary spending).
R4GoodPersonalFinances R package
Make optimal decisions for your personal or household finances. Use tools and methods that are selected carefully to align with academic consensus, bridging the gap between theoretical knowledge and practical application. They help you find your own personalized optimal discretionary spending or optimal asset allocation, and prepare you for retirement or financial independence. The optimal solution to this problems is extremely complex, and we only have a single lifetime to get it right. Fortunately, we now have the user-friendly tools implemented, that integrate life-cycle models with single-period net-worth mean-variance optimization models. Those tools can be used by anyone who wants to see what highly-personalized optimal decisions can look like.
