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.

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Introduction

00:00 • 3min

Career Journey and Transition to Business

02:47 • 11min

Retirement Planning and Fund Company Merger

13:53 • 2min

Navigating Mutual Funds and Founding a Financial Planning Company

15:54 • 16min

Differing Retirement Planning Approaches and a Book Recommendation

31:39 • 2min

Navigating Retirement Planning Trade-Offs

33:22 • 10min

Navigating Retirement Planning and Introducing Maxify Planner

43:50 • 2min

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

46:15 • 12min

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

58:02 • 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.

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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/⁠⁠⁠