doughnut 0.0.2 → 0.0.3

checksums.yaml

@@ -1,7 +1,7 @@
 ---
 SHA1:
-  metadata.gz: f01e3a907f5a02640cb2165b3dd0a54b43bcbd6a
-  data.tar.gz: 25c3d9761f3cc8ce7206d93074228273add535bb
+  metadata.gz: 7bc1546c0df232365b38159c778448b343458f94
+  data.tar.gz: 19f2d1ef046b25fd11e9835f059ad87c6e5f06a1
 SHA512:
-  metadata.gz: 41484a070fc62ec719cb2c4b7508d6192e50abd4adb571b03a1929db1b7f22721284136f80621b873e00e9d1b4c3d33549b816099d55849c061afe7113909d6c
-  data.tar.gz: d7fd4748a4e1ad7574f34e53ef37e945812d54ca4e744bd45b0512b83c46fa0420fa664793a4f14ead07b3251c481a22ed9399e6fa96fcb6732529847bc29f81
+  metadata.gz: 35a7b3618af9f8358f79fbb2e5a400fb447a94a07521b2a15124818d548538e333c685a0a98694b17506b5b3cd52a380d4b87be89ddc83c02e629cbf8e4e3786
+  data.tar.gz: 3b10b380cda929553691e32e602928107cc2a51f97916b2da4bd863175b46f65d3861b3491d0d8ff62236abe435296182cd09d22be9234e79d4e8d938ceeeb5e

data/lib/doughnut.rb

@@ -1,5 +1,7 @@
+require "doughnut/expenses"
+require "doughnut/income"
+require "doughnut/retirement_calculator"
 require "doughnut/version"
-require "doughnut/capm"
 
 module Doughnut
 end

data/lib/doughnut/expenses.rb

@@ -0,0 +1,45 @@
+module Doughnut
+
+  class Expenses
+
+    attr_accessor :monthly_expenses, :inflation_rate
+
+    def initialize
+      @monthly_expenses = 2500
+      @inflation_rate = 0.0322
+    end
+
+    def future_expenses(death_date, discount_rate)
+      output = []
+      (Date.today..death_date).each do |mydate|
+        output << present_value(mydate, discount_rate) if is_last_day(mydate)
+      end
+      output
+    end
+
+    def total_expenses(death_date, discount_rate)
+      output = 0
+      future_expenses(death_date, discount_rate).each do |h|
+        output += h[:expense]
+      end
+      output
+    end
+
+    private
+
+    def is_last_day(mydate)
+      mydate.month != mydate.next_day.month
+    end
+
+    def present_value(mydate, discount_rate)
+      { date: mydate, expense: @monthly_expenses*discount_factor(mydate, discount_rate) }
+    end
+
+    def discount_factor(mydate, discount_rate)
+      t = (mydate - Date.today)/30
+      ((1 + @inflation_rate/12)/(1 + discount_rate/12))**t
+    end
+
+  end
+
+end

data/lib/doughnut/income.rb

@@ -0,0 +1,45 @@
+module Doughnut
+
+  class Income
+
+    attr_accessor :monthly_income, :income_growth_rate
+
+    def initialize
+      @monthly_income = 3700
+      @income_growth_rate = 0.01
+    end
+
+    def future_income(death_date, discount_rate)
+      output = []
+      (Date.today..death_date).each do |mydate|
+        output << present_value(mydate, discount_rate) if is_last_day(mydate)
+      end
+      output
+    end
+
+    def total_income(death_date, discount_rate)
+      output = 0
+      future_expenses(death_date, discount_rate).each do |h|
+        output += h[:income]
+      end
+      output
+    end
+
+    private
+
+    def is_last_day(mydate)
+      mydate.month != mydate.next_day.month
+    end
+
+    def present_value(mydate, discount_rate)
+      { date: mydate, income: @monthly_income*discount_factor(mydate, discount_rate) }
+    end
+
+    def discount_factor(mydate, discount_rate)
+      t = (mydate - Date.today)/30
+      ((1 + @income_growth_rate/12)/(1 + discount_rate/12))**t
+    end
+
+  end
+
+end

data/lib/doughnut/retirement_calculator.rb

@@ -0,0 +1,24 @@
+module Doughnut
+
+  class RetirementCalculator
+
+    attr_accessor :death_date, :portfolio_return
+
+    def initialize
+      @death_date = Date.new(2067,7,19)
+      @portfolio_return = 0.1
+    end
+
+    def retirement_date(total_expenses, monthly_incomes)
+      return Date.today if total_expenses == 0
+      return @death_date if monthly_incomes.length == 0
+      running_income = 0
+      monthly_incomes.each do |h|
+        running_income += h[:income]
+        return h[:date] if running_income >= total_expenses
+      end
+    end
+
+  end
+
+end

data/lib/doughnut/version.rb

@@ -1,3 +1,3 @@
 module Doughnut
-  VERSION = "0.0.2"
+  VERSION = "0.0.3"
 end

data/spec/expenses_spec.rb

@@ -0,0 +1,164 @@
+require "spec_helper"
+
+module Doughnut
+
+  describe Expenses do
+
+    before(:each) do
+      @expenses = Expenses.new
+    end
+
+    describe "parameters" do
+
+      it "returns average monthly expenses of $2500" do
+        expect(@expenses.monthly_expenses).to eq 2500
+      end
+
+      it "updates the average monthly expenses" do
+        @expenses.monthly_expenses = 52.55
+        expect(@expenses.monthly_expenses).to eq 52.55
+      end
+
+      it "returns an inflation rate of 3.22%" do
+        expect(@expenses.inflation_rate).to eq 0.0322
+      end
+
+      it "updates the average inflation rate" do
+        @expenses.inflation_rate = 0.112
+        expect(@expenses.inflation_rate).to eq 0.112
+      end
+
+    end
+
+    describe "predicted expenses" do
+
+      context "no inflation" do
+
+        before(:each) do
+          @expenses.inflation_rate = 0
+        end
+
+        it "returns no expenses if the death date has passed" do
+          allow(Date).to receive(:today) { Date.new(2070,1,1) }
+          expect(@expenses.future_expenses(Date.new(2065,1,1), 0.1)).to eq []
+        end
+
+        it "returns one date if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,19) }
+          future_expenses = @expenses.future_expenses(Date.new(2067,7,19), 0.1)
+          expect(future_expenses.first[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns one expense if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,19) }
+          future_expenses = @expenses.future_expenses(Date.new(2067,7,19), 0.1)
+          lower_bound = 0.99696173*2500
+          upper_bound = 0.99696174*2500
+          expect(future_expenses.first[:expense]).to be > lower_bound
+          expect(future_expenses.first[:expense]).to be < upper_bound
+        end
+
+        it "returns two dates if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,22) }
+          future_expenses = @expenses.future_expenses(Date.new(2067,7,19), 0.1)
+          expect(future_expenses.first[:date]).to eq Date.new(2067,5,31)
+          expect(future_expenses.last[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns two expenses if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,22) }
+          future_expenses = @expenses.future_expenses(Date.new(2067,7,19), 0.1)
+          lower_bound_one = 0.997513455*2500
+          upper_bound_one = 0.997513456*2500
+          lower_bound_two = 0.989269542*2500
+          upper_bound_two = 0.989269543*2500
+          expect(future_expenses.first[:expense]).to be > lower_bound_one
+          expect(future_expenses.first[:expense]).to be < upper_bound_one
+          expect(future_expenses.last[:expense]).to be > lower_bound_two
+          expect(future_expenses.last[:expense]).to be < upper_bound_two
+        end
+
+        it "returns many expenses if there are many months up to the death date" do
+          allow(Date).to receive(:today) { Date.new(2060,1,2) }
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).length).to eq 90
+        end
+
+      end
+
+      context "non-zero inflation" do
+
+        before(:each) do
+          @expenses.inflation_rate = 0.01
+        end
+
+        it "returns no expenses if the death date has passed" do
+          allow(Date).to receive(:today) { Date.new(2088,1,1) }
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1)).to eq []
+        end
+
+        it "returns one expense if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,2) }
+          lower_bound = 0.99305612*2500
+          upper_bound = 0.99305613*2500
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).first[:expense]).to be > lower_bound
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).first[:expense]).to be < upper_bound
+        end
+
+        it "returns one date if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,2) }
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).first[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns two dates if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,25) }
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).first[:date]).to eq Date.new(2067,5,31)
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).last[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns two expenses if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,25) }
+          lower_bound_one = 0.99850795*2500
+          upper_bound_one = 0.99850796*2500
+          lower_bound_two = 0.99108103*2500
+          upper_bound_two = 0.99108104*2500
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).first[:expense]).to be > lower_bound_one
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).first[:expense]).to be < upper_bound_one
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).last[:expense]).to be > lower_bound_two
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).last[:expense]).to be < upper_bound_two
+        end
+
+        it "returns many expenses if there are many months up to the death date" do
+          allow(Date).to receive(:today) { Date.new(2060,1,2) }
+          expect(@expenses.future_expenses(Date.new(2067,7,19), 0.1).length).to eq 90
+        end
+
+      end
+
+      describe "total expenses" do
+
+        it "calculates the total for one expense" do
+          @expenses.inflation_rate = 0
+          allow(Date).to receive(:today) { Date.new(2067,6,19) }
+          lower_bound = 0.99696173*2500
+          upper_bound = 0.99696174*2500
+          expect(@expenses.total_expenses(Date.new(2067,7,19), 0.1)).to be > lower_bound
+          expect(@expenses.total_expenses(Date.new(2067,7,19), 0.1)).to be < upper_bound
+        end
+
+        it "calculates the total for two expenses" do
+          @expenses.inflation_rate = 0
+          allow(Date).to receive(:today) { Date.new(2067,5,22) }
+          lower_bound = 0.997513455*2500 + 0.989269542*2500
+          upper_bound = 0.997513456*2500 + 0.989269543*2500
+          expect(@expenses.total_expenses(Date.new(2067,7,19), 0.1)).to be > lower_bound
+          expect(@expenses.total_expenses(Date.new(2067,7,19), 0.1)).to be < upper_bound
+        end
+
+      end
+
+    end
+
+
+  end
+
+end

data/spec/income_spec.rb

@@ -0,0 +1,148 @@
+require "spec_helper"
+
+module Doughnut
+
+  describe Income do
+
+    before(:each) do
+      @income = Income.new
+    end
+
+    describe "parameters" do
+
+      it "returns average monthly income of $3700" do
+        expect(@income.monthly_income).to eq 3700
+      end
+
+      it "updates the average monthly income" do
+        @income.monthly_income = 200
+        expect(@income.monthly_income).to eq 200
+      end
+
+      it "returns an income growth rate of 1%" do
+        expect(@income.income_growth_rate).to eq 0.01
+      end
+
+      it "updates the income growth rate" do
+        @income.income_growth_rate = 0.37
+        expect(@income.income_growth_rate).to eq 0.37
+      end
+
+    end
+
+    describe "predicted income" do
+
+      context "no income growth" do
+
+        before(:each) do
+          @income.income_growth_rate = 0
+        end
+
+        it "returns no income if the death date has passed" do
+          allow(Date).to receive(:today) { Date.new(2075,1,1) }
+          expect(@income.future_income(Date.new(2065,1,1), 0.1)).to eq []
+        end
+
+        it "returns one date if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,19) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          expect(future_income.first[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns one income if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,19) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          lower_bound = 0.99696173*3700
+          upper_bound = 0.99696174*3700
+          expect(future_income.first[:income]).to be > lower_bound
+          expect(future_income.first[:income]).to be < upper_bound
+        end
+
+        it "returns two dates if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,22) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          expect(future_income.first[:date]).to eq Date.new(2067,5,31)
+          expect(future_income.last[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns two incomes if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,22) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          lower_bound_one = 0.997513455*3700
+          upper_bound_one = 0.997513456*3700
+          lower_bound_two = 0.989269542*3700
+          upper_bound_two = 0.989269543*3700
+          expect(future_income.first[:income]).to be > lower_bound_one
+          expect(future_income.first[:income]).to be < upper_bound_one
+          expect(future_income.last[:income]).to be > lower_bound_two
+          expect(future_income.last[:income]).to be < upper_bound_two
+        end
+
+        it "returns many incomes if there are many months up to the death date" do
+          allow(Date).to receive(:today) { Date.new(2060,1,2) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          expect(future_income.length).to eq 90
+        end
+
+      end
+
+      context "non-zero income growth" do
+
+        before(:each) do
+          @income.income_growth_rate = 0.03
+        end
+
+        it "returns no incomes if the death date has passed" do
+          allow(Date).to receive(:today) { Date.new(2088,1,1) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          expect(future_income).to eq []
+        end
+
+        it "returns one date if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,3) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          expect(future_income.first[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns one income if there is only one month to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,6,3) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          lower_bound = 0.99479187*3700
+          upper_bound = 0.99479188*3700
+          expect(future_income.first[:income]).to be > lower_bound
+          expect(future_income.first[:income]).to be < upper_bound
+        end
+
+        it "returns two dates if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,25) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          expect(future_income.first[:date]).to eq Date.new(2067,5,31)
+          expect(future_income.last[:date]).to eq Date.new(2067,6,30)
+        end
+
+        it "returns two incomes if there are two months to the death date" do
+          allow(Date).to receive(:today) { Date.new(2067,5,25) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          lower_bound_one = 0.99884028*3700
+          upper_bound_one = 0.99884029*3700
+          lower_bound_two = 0.99306187*3700
+          upper_bound_two = 0.99306188*3700
+          expect(future_income.first[:income]).to be > lower_bound_one
+          expect(future_income.first[:income]).to be < upper_bound_one
+          expect(future_income.last[:income]).to be > lower_bound_two
+          expect(future_income.last[:income]).to be < upper_bound_two
+        end
+
+        it "returns many incomes if there are many months up to the death date" do
+          allow(Date).to receive(:today) { Date.new(2060,1,2) }
+          future_income = @income.future_income(Date.new(2067,7,19), 0.1)
+          expect(future_income.length).to eq 90
+        end
+
+      end
+
+    end
+
+  end
+
+end

data/spec/retirement_calculator_spec.rb

@@ -0,0 +1,75 @@
+require "spec_helper"
+
+module Doughnut
+
+  describe RetirementCalculator do
+
+    before(:each) do
+      @retire = RetirementCalculator.new
+    end
+
+    describe "parameters" do
+
+      context "defaults" do
+
+        it "returns a death date of 80 years old" do
+          expect(@retire.death_date).to eq Date.new(2067,7,19)
+        end
+
+        it "returns average portfolio return of 10%" do
+          expect(@retire.portfolio_return).to eq 0.1
+        end
+
+        it "updates the death date" do
+          @retire.death_date = Date.new(2001,3,7)
+          expect(@retire.death_date).to eq Date.new(2001,3,7)
+        end
+
+        it "updates the average portfolio return" do
+          @retire.portfolio_return = 0.99
+          expect(@retire.portfolio_return).to eq 0.99
+        end
+
+      end
+
+    end
+
+    describe "retirement date" do
+
+      it "returns today's date if there are no monthly expenses or incomes" do
+        expect(@retire.retirement_date(0,[])).to eq Date.today
+      end
+
+      it "returns today's date if there are no monthly expenses but positive incomes" do
+        expect(@retire.retirement_date(0, [{date: Date.new(2012,1,2), income: 100}])).to eq Date.today
+      end
+
+      it "returns the death date if there is no monthly income" do
+        expect(@retire.retirement_date(1,[])).to eq Date.new(2067,7,19)
+      end
+
+      it "returns the date of earned income if PV(income) > PV(expenses)" do
+        params = [{:date => Date.new(2040,1,2), :income => 2000}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2040,1,2)
+      end
+
+      it "returns the date of earned income if PV(income) = PV(expenses)" do
+        params = [{:date => Date.new(2041,2,8), :income => 1000}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2041,2,8)
+      end
+
+      it "returns the date of earned income if PV(income) > PV(expenses) for multiple incomes" do
+        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1000}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2049,7,8)
+      end
+
+      it "returns the date of earned income if PV(income) = PV(expenses) for multiple incomes" do
+        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2049,7,8)
+      end
+
+    end
+
+  end
+
+end

metadata

@@ -1,14 +1,14 @@
 --- !ruby/object:Gem::Specification
 name: doughnut
 version: !ruby/object:Gem::Version
-  version: 0.0.2
+  version: 0.0.3
 platform: ruby
 authors:
 - Cyrus Vandrevala
 autorequire: 
 bindir: bin
 cert_chain: []
-date: 2015-05-08 00:00:00.000000000 Z
+date: 2015-05-21 00:00:00.000000000 Z
 dependencies:
 - !ruby/object:Gem::Dependency
   name: bundler
@@ -80,9 +80,13 @@ files:
 - Rakefile
 - doughnut.gemspec
 - lib/doughnut.rb
-- lib/doughnut/capm.rb
+- lib/doughnut/expenses.rb
+- lib/doughnut/income.rb
+- lib/doughnut/retirement_calculator.rb
 - lib/doughnut/version.rb
-- spec/capm_spec.rb
+- spec/expenses_spec.rb
+- spec/income_spec.rb
+- spec/retirement_calculator_spec.rb
 - spec/spec_helper.rb
 homepage: ''
 licenses:
@@ -109,5 +113,7 @@ signing_key:
 specification_version: 4
 summary: Generate statistics for a personal portfolio.
 test_files:
-- spec/capm_spec.rb
+- spec/expenses_spec.rb
+- spec/income_spec.rb
+- spec/retirement_calculator_spec.rb
 - spec/spec_helper.rb

data/lib/doughnut/capm.rb

@@ -1,6 +0,0 @@
-module Doughnut
-
-  class CAPM
-  end
-
-end

data/spec/capm_spec.rb

@@ -1,30 +0,0 @@
-require "spec_helper"
-
-module Doughnut
-
-  describe CAPM do
-
-    describe "risk free rate" do
-      it "retrieves the risk free interest rate from Yahoo Finance"
-      it "uses a default rate if Yahoo cannot be accessed"
-    end
-
-    describe "broad market rate" do
-      it "estimates a broad market rate based on historical data"
-    end
-
-    describe "beta" do
-      it "calculates beta for two correlated assets"
-      it "calculates beta for two uncorrelated assets"
-      it "calculates beta for two random assets"
-    end
-
-    describe "beta" do
-      it "calculates beta for two correlated assets"
-      it "calculates beta for two uncorrelated assets"
-      it "calculates beta for two random assets"
-    end
-
-  end
-
-end