Would it help if algorithms tell your financial net worth (adjusted for inflation) after 5 yrs, 10yrs, 20yrs or for any year over next 50 years, after taking into account your current and future savings, expenses, major expenses like child education, house purchase, etc?
Algorithms can create that financial blueprint for you where:-
1. You can reshuffle your goals earlier or later so that you achieve your prioritized financial goals ( like child undergrad education expense after 5 years takes preference over house you intend to buy next year which you can do later as well).
2. You can avoid certain investments/expenses which are affecting your inflation adjusted net worth significantly in later part of your life.
3. You may start saving more, knowing that current savings won’t be sufficient to achieve your positive financial net worth at all point time in your life.
4. You would have significantly more clarity on your personal finances than ever.
5. You would tell your adviser what you want rather than he/she telling you which product you should buy.
6. You would not invest into products which are not fitting in with your financial freedom.
7. You will let your money work for your and not for others.
Finally, you would be able to look at your finances the way you run your business/job where all decisions are based on data, planning and artificial intelligence and not on impulse, market reaction or what investment products someone is selling to you. It’s your money and it has to be invested based upon your needs and not product what anyone is offering.
I have done the exercise with several CXOs, Founders, NRIs and professionals, and it has been an eye opening experience for them giving that “aha” feeling. A brief example of financial blueprint of someone with good financial assets today, saves year on year and still may have negative net financial net-worth in the later part of his/her life.