Economics Matters with Laurence Kotlikoff

The Economics of Aging: Rick Miller's Approach to Retirement Planning

Mar 5, 2024

Rick Miller and Laurence Kotlikoff discuss retirement planning strategies, misconceptions about savings, and the human psychology of financial decisions. They cover the importance of setting realistic goals, the need for comprehensive financial planning, and the differences in preferences for grocery shopping. The conversation also touches on high-income earners' retirement savings, the history of pensions, and the shortcomings of current economic planning tools.

01:01:50

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Episode guests

Rick Miller

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Podcast summary created with Snipd AI

Quick takeaways

Clients seek holistic financial planning from advisors, emphasizing a shift in financial advice trends.

Underestimating retirement complexity and longevity risk necessitates detailed financial plans for the future.

Existing retirement account systems lack guidance, leading to potentially misguided financial decisions and inadequate savings.

Deep dives

Clients Seeking Comprehensive Financial Planning

Clients are approaching financial advisors not just for investment advice but for comprehensive financial planning. They are looking for guidance on their entire financial future, including retirement, investments, and financial security, showing a shift towards holistic financial advice.

Introduction

3min

Career Journey and Transition to Business

11min

Retirement Planning and Fund Company Merger

2min

Navigating Mutual Funds and Founding a Financial Planning Company

16min

Differing Retirement Planning Approaches and a Book Recommendation

2min

Navigating Retirement Planning Trade-Offs

10min

Navigating Retirement Planning and Introducing Maxify Planner

2min

Critical Analysis of Retirement Planning System in the U.S.

12min

Discussion on Financial Malfeasance, Comprehensive Financial Advice, and Service Plug

4min

Take the guesswork out of financial decisions at every stage of life with Maxifi: ⁠⁠⁠⁠⁠⁠⁠⁠https://maxifiplanner.com/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Designed by Economist Laurence Kotlikoff.

Professor Kotlikoff sits down with Rick Miller, founder and President of Sensible Financial Planning and a prominent figure in the financial advisory world. With a robust background that includes a Ph.D. in economics from the University of Chicago and a transformative career that took him from academia to a leader in practical financial planning, Rick Miller brings a wealth of knowledge and direct experience to the conversation about retirement planning and personal finance.

Topics Covered:

Misconceptions about Retirement Savings
The Human Psychology of Saving
Comprehensive Financial Planning Strategies

Time Stamps:

00:00 Expert motivates financial planning, shares personal journey.
07:31 Discussion at seminar led by Gary Becker.
11:43 Anxiety in youth: overcoming self-doubt.
18:25 Led project to combine mutual funds, advise AARP.
24:38 Utilized Rolodex to launch mutual fund business.
27:30 Economics-based approach, importance of financial planning.
34:14 Set realistic retirement goals with careful planning.
41:11 Individuals have different preferences for grocery shopping.
47:35 High-income earners may need more retirement savings.
52:56 Government-sponsored retirement accounts managed by employers.
54:32 Early pensions, American Express, 1870s, retirees.
01:01:59 Economic planning tools lacking, causing widespread apprehension.
01:05:17 People seek more than just investment advice.

You will gain an understanding of the real-world implications of mismanaging retirement savings and how one can approach their personal finance by leveraging the expertise of seasoned advisors like Rick Miller. The value of this discussion is immense, as it brings to light practical tools and methodologies, such as dynamic programming and the MaxiFi planner, which are crucial for managing finances in anticipation of a robust, secure retirement.

_____________________________________________________

Laurence Kotlikoff is a Boston University Economist, a NY Times Best Selling Author, President of maxifi.com, and Author of Money Magic.

Follow Professor Kotlikoff:

Facebook: kotlikoff

Twitter: @kotlikoff

LinkedIn: laurencekotlikoff

Substack: https://larrykotlikoff.substack.com/

Books: https://kotlikoff.net/books/

Company: https://maxifiplanner.com/⁠⁠⁠

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Economics Matters with Laurence Kotlikoff

The Economics of Aging: Rick Miller's Approach to Retirement Planning

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Clients Seeking Comprehensive Financial Planning

Challenges in Retirement Planning

Inadequacy of Retirement Account Systems

Human Psychology and Financial Planning

Need for Economic Space Financial Planning Tools

Remember Everything You Learn from Podcasts