Personal finance is a challenging topic which can benefit from a scientific approach to individual financial planning. This paper presents an individual asset liability management (iALM) model for life cycle planning which uses the methodology of dynamic stochastic optimisation and incorporates ideas from both classical and behavioural finance. Its implementation is in the form of a decision su...

This 1)aper addresses the stochastic modeling for managing asset liability process. We start with developing a jump-diffusion process for evaluating of the liabilities of the insurance company in general. We then tbrnmlate the ALM process into a stochastic control problem. With this approach, we present a Bel|man-Dreyfus Fundamental type formula for ALM process in terms of the solution of a sys...

Traditionally, the potential financial impact of interest rate movements has been evaluated through duration measures or through computer simulations. The duration measure approach is analytical, and focuses on changes in market value; the computer simulation approach is computational and focuses on income statement and balance sheet impacts. In this paper a complementary approach for projectin...

Knowledge and learning are seen as key success factors for international competitiveness and economic growth in contemporary societies and have been placed at the top of the policy agenda in many countries. But actual developments in former socialist countries of Europe and Asia have totally run counter to such aims in the last decade. Science and technology (S&T) in the transformation countrie...