It’s no secret that personal finance is in a state of flux Realworld. As the financial world comes together to discuss what tech investments are worth, our conversations have veered toward more potent words like “diversify” and “alternative assets.” The central question now is: What do we mean by “realworld”? The answer will almost certainly depend on you and your specific situation. However, based on what we have seen over the last year or so, it seems to be a good place to start.
What is RealWorld Finance?
In this guide, we’ll cover the following:
Why we need a realworld financial product now
The benefits of building a decentralized financial product
The benefits of building a private financial product
Understanding the different types of assets and how they can fit into a realworld financial model
Why build a product in this era of uncertainty?
The global financial crisis revealed a number of short-term short-termism. The credit crunch and various financial news events (such as the subprime mortgage crisis) have definitely toned down the levity that characterized financial planning and income potential in the United States.
However, there are still some aspects of money management that remain laughs in the mouths of many people. So, what can we do to change this?
The digital, physical, and artificial worlds: all connected
The Internet of Things (IoT) is now a household term. It has been around for a while and it’s only going to keep getting faster. By the end of this year, we’re likely to see more machines connected to the internet—including robots, car mirrors, and home appliances.
This will bring to light new challenges and require new strategies for managing your money. One of the most obvious ones being how do you manage your retirement savings when your wallet is electronically stored somewhere else?
To make matters worse, the financial industry is already dealing with this threat. We’re likely to see more regulation around the likes and dislikes of financial products. In the words of one industry expert, “It’s not just the technology that’s going to change, it’s the way that people interact with technology.”
Decide how you’ll use your new fml virtual wealth
You won’t use your fml virtual wealth just yet. We’ll talk about that in a moment, but first, we need to get you comfortable with how you’re going to use it.
There are many different ways to use your new fml virtual wealth. The ideal scenario is to use it as a fund manager. This means you’ll manage your investment risk and have someone else to talk to if something goes wrong. However, if you’re more comfortable with managing your own money, you can also use your new fml virtual wealth as a fund manager.
You’ll have to sign a contract that states that your investments will be managed according to your own choosing. However, fund managers typically have fiduciary responsibility toward their clients. This means they have to use their best judgment when making investment decisions.
For example, say you have $50,000 in savings accounts. Instead of using your debit card to make withdrawals, you’ll have to use your new fml virtual wealth. The fund manager will have to decide who gets the money and how much.
Bottom line
The future of financial planning is in virtual wealth. You can invest like never before and get rewarded for it. You can create financial futures and invest like never before.
If you want to make the most of your new fml virtual wealth, you need to make sure you’re comfortable with its use. You can’t just tell someone they have to use it as they see fit. You have to help them earn the right to use it.
That’s how you get in touch with your financial future and make it a reality.