Gregory H. Wolf

Behavioral Advisor to Ultra-High Net Worth Individuals and their Families

About

Gregory H. Wolf is a former public and private company CEO in the health care space. He now provides behavioral advice and counsel to ultra-high net worth individuals and their children. He divides his time between San Juan, Puerto Rico, State College, Pennsylvania and client travel.

PO Box 455
State College, PA 16804920-265-0132
[email protected]

DUC Theorem

The Diminishing Utility of Compounding (DUC) Theorem adjusts the standard future value equation to reflect:✦ A shift from maximizing net worth to maximizing life quality
✦ The exponential decline in the utility of deferred wealth
✦The real-world consequences of drawdown risk late in lifeThis new perspective provides a rational, utility-based counterpoint to the industry's often misleading emphasis on staying fully invested through all market cycles.
The DUC Theorem provides a model that accounts for not just money over time but more importantly, for meaning over time.The DUC formula introduces a decay factor representing the declining marginal utility of wealth as time runs short:
DUC = P × (1 + r)^{H × (1 - e}(-kH) / (1 + H))Where:
- H = L - A, the remaining years (life expectancy minus current age)
- k = decay constant representing time scarcity
- Other variables reflect principal, rate, and compounding time
As H approaches 0, DUC approaches P. As H approaches infinity, DUC approaches traditional FV.