This is a guest post from a reader that contacted me after I did some posts on the affinity between a net wealth dispersion process (aka MC sim if it is done right) and stochastic present values (SPV or feasibility). The reader, self-described as "You can list me as "Rodney Smith, another (very) amateur retiree interested in retirement finance" made the case (said he had a short proof) that PWR and SPV are allied as well. Doesn't surprise me, I think. Most of the math in the retirement stuff I see uses same or similar parameters for vaguely related ends. I told him "cool, send it up and I'll put it on the blog for my three readers." Heh.
Here, without comment or checking his work (I am not an instructor, just a corner-cutting old-man blogger), is his proof. Thanks Rodney.
No comments:
Post a Comment