D. Resultados de las estimaciones de Cópulas Elípticas y Arquimedianas
D.3. Tiempos de incumplimientos ajustados del modelo Vasicek
When a banker looks at a person’s financial statement, it is easy to see which of the three financial classes the person fits in. For example:
The working poor tend to have low-paying jobs and, as a result of that, limited expenses. Generally, they have no assets and no liabilities. Most of the poor rent and use public transportation. This class tends to live at the survival level. They live paycheck to paycheck, if they have a paycheck. If they require banking services, they prefer to use pawn shops or payday-loan companies for emergency financing.
The middle class earns more money but, generally, has more expenses and liabilities. New cars, bigger houses, exotic vacations—as well as keeping up with the Joneses—impact the Expense column and the Liabilities.
I am often asked why I place a 401(k) plan as a liability. The answer is simple. Your retirement plan is an unfunded or underfunded liability, that actually takes money out of your pocket.
After a person retires and the retirement plan begins to put money back in your pocket, it then becomes an asset—an asset that, hopefully, provides enough cash flow to cover your living expenses for the rest of your life.
There are three problems with most retirement plans.
1. Due to market fluctuations and inflation, your may never know how much money you really have.
2. You never really know how long you will live.
3. You never really know how much money you will need.
Obviously, many of the rich have jobs, expenses, and liabilities. But I intentionally left salary from a job and the expenses and liabilities columns blank in order to emphasize the difference between the rich, the poor, and the middle class.
The point I want to make is that the rich focus on the power of their asset column. The middle class, by and large, have few assets and many liabilities. The truly poor have no idea what assets and liabilities are.
This is a copy of the financial statement from Rich Dad’s CASHFLOW 101 game. Notice the highlighted lines in the income column. Those lines represent the income from assets in the asset column.
The CASHFLOW game was designed to teach players, young and old, to harness the power of the balance sheet. A player’s financial intelligence increases the more the player’s mind recognizes the power of the balance sheet. There are thousands of subtle financial lessons embedded in all of the CASHFLOW games. Since every game is different—different professions (and incomes), different Deal cards, different Doodad expenses, different market conditions—a player’s financial IQ increases every time they play.
The more a person plays the CASHFLOW game—whether it’s CASHFLOW for Kids, CASHFLOW 101, CASHFLOW 202, or one of the new Rich Dad social mobile games—the more obvious it becomes why bankers do not ask you for your school report card. The more you play the game, the more you realize why your banker does not care if you were an "A" student, "B" student, or a college dropout like Steve Jobs, Bill Gates, or Mark Zuckerberg.
A banker wants to know:
If you know how to harness the power of the balance sheet If you know the difference between assets and liabilities How many assets you really own
How much money your assets are putting in your pocket
If you can teach your child what your banker wants to know, then you have given your child a massive
financial headstart in life.
Action Step for Parents
Discuss why bankers do not ask for your report card.
Talk about school report cards and what they measure and represent. Then discuss the types of reporting related to money and finance. The goal of credit ratings (like a FICO score) or credit reports are much the same as a report card. They communicate how a person is doing in terms of managing their financial life. As a person begins to make purchases and invest, the lender—a creditor, bank, mortgage company, or auto dealership—will make determinations related to a person’s credit worthiness based upon credit scores or a person’s financial statement.
If a person is seeking a business loan or financing for an investment property, a banker will ask for a financial statement.
A financial statement is your real-world report card. It shows a banker your financial strength and the level of your financial education and that is important information to a banker.
If you have a financial statement, share it with you child…to the extent that parts of it are age-appropriate. It’s a great tool to reinforce new vocabulary words and the concepts of income and expenses and assets and liabilities.
The real game board of the CASHFLOW game is the financial statement that players fill out and update as the game unfolds. The CASHFLOW games teach players, young and old, the power of the financial statement…and how to see the world through a banker’s eyes.