A Computer Model for Flexible Income Programming

Abstract

inflation rates and the expected pattern of income from the breadwinner's einployment. As the number of factors for consideration increases, the complexity of the process also increases. Therefore, computer models have been designed to aid planners in the evaluation and analysis of income needs. In a recent article,' the authors presented a new approach to programming called Flexible Income Programming (FIP). FIP is used to calculate the cost and amount of life insurance needed (if any) that, when combined with other postdeath resources, will provide real income protection to the beneficiaries following the breadwinner's death. The extent to which such protection is provided should be equivalent to the real income protection the survivors would have received from the breadwinner's employment income had he or she survived. A footnote in that article indicated the computer program designed to handle the calculation requirements of FIP would be published as part of an article in a subsequent issue of this journal. However, the length of the program and accompanying text make the study too long for inclusion here. Therefore, this expanded abstract is being published as an announcement to interested readers that A Computer Modelfor Flexible Inicomne Programmning has been published by the School of Business of Auburn University. Copies may be obtained by writing to Terry Rose, Dept. of Accounting and Finance, Auburn University, AL 36849.