Maxifi

MaxiFi is financial and retirement planning software designed to help individuals and households create a comprehensive financial plan for their lifetime. It aims to eliminate guesswork in financial planning by using algorithms to calculate the highest sustainable living standard for users, starting today and continuing throughout their lives. The software was developed by economist Laurence Kotlikoff and uses an approach called Consumption Smoothing, which is based on the Life-Cycle Hypothesis of saving and consumption developed by Nobel Prize-winning economist Franco Modigliani and his colleague Richard Brumberg. This approach seeks to maintain a stable living standard over the course of one’s life.

MaxiFi’s features include:

• A Base Plan and a Maximized Plan to show how various strategies can increase fixed and discretionary spending
• Optimization of Social Security benefits, retirement account withdrawals, and the use of Roth versus Non-Roth accounts
• Tax-efficient strategies for retirement withdrawals and annuity purchases
• Monte Carlo simulations to assess risk and reward in investment strategies and spending behaviors
• A Budget Tracker tool to help users stay on track with their income, spending, and saving targets
• The ability to run unlimited “What-If” scenarios to see the impact of different financial decisions
• Detailed annual and lifetime projections of income and spending

MaxiFi offers different versions, including Standard, Premium, and PRO, each with varying features tailored to the needs of individuals, households, and financial advisors. The Premium version includes precise Monte Carlo living standard simulations, and the PRO version is designed for advisors managing multiple clients.

MaxiFi Planner is web-based, meaning there is no software to download or install, and it is designed to be user-friendly with minimal data entry required. It is also responsive to changes in financial legislation, such as the Tax Cuts and Jobs Act of 2017 and the SECURE Act of 2020.