I note that it assigns infinite badness to going bankrupt (e.g., if you put the cost of any event as >= your wealth, it always takes the insurance). But in life, going bankrupt is not infinitely bad, and there are definitely some insurances that you don’t want to pay for even if the loss would cause you to go bankrupt. It is not immediately obvious to me how to improve the app to take this into account, other than warning the user that they’re in that situation. Anyway, still useful but figured I’d flag it.
I think the solution to this is to add something to your wealth to account for inalienable human capital, and count costs only by how much you will actually be forced to pay. This is a good idea in general; else most people with student loans or a mortage are “in the red”, and couldnt use this at all.
This is pretty useful!
I note that it assigns infinite badness to going bankrupt (e.g., if you put the cost of any event as >= your wealth, it always takes the insurance). But in life, going bankrupt is not infinitely bad, and there are definitely some insurances that you don’t want to pay for even if the loss would cause you to go bankrupt. It is not immediately obvious to me how to improve the app to take this into account, other than warning the user that they’re in that situation. Anyway, still useful but figured I’d flag it.
I think the solution to this is to add something to your wealth to account for inalienable human capital, and count costs only by how much you will actually be forced to pay. This is a good idea in general; else most people with student loans or a mortage are “in the red”, and couldnt use this at all.
This doesn’t play very well with fractional kelly though
Human capital is worth nothing after you die, though.