MaxiFi's Full Risk Investing Lets You See the Good, Bad, and Ugly from Risky Investing скачать в хорошем качестве

MaxiFi's Full Risk Investing Lets You See the Good, Bad, and Ugly from Risky Investing

If you are doing financial planning, chances are you are "planning" with one the hundreds of thousands of Registered Investment Advisors (RIAs) or broker-dealers who are doing conventional planning. They all run Monte Carlo simulations showing you the probability of achieving "your" plan -- the typically miles-too-high retirement spending goal they've set for you in one of three ways -- using an 85 percent of pre-retirement income replacement rate, asking you what you'd like to spend annually in retirement (my answer is $1 billion), or assuming you will withdraw 4 percent or some other constant share of the assets you owned at retirement each and every year, no matter whether those assets how lost half their value. Next they show you that you can't meet "your" target without investing more aggressively. "Let me invest for you. I'll let you meet your target at least 80 percent of the time." At this point in the bait and switch, they present a more aggressive investment strategy with an 80 percent or higher probability of success. I just reviewed a plan from Merrill Lynch. Here's their statement about their investment advice: "The Asset Allocation Strategy that has been formulated in light of your goals is inconsistent with your Investor Profile." In plain English, this means that Merrill is recommending a strategy with more risk than the household was taking and, presumably, preferred. In the plan I reviewed, the retired couple is in their mid Sixties. Merrill's asset allocation is 80.37 percent equity and 16.51 percent in fixed income, none of which appears to include TIPS! The industry's practices violates any reasonable economics-based fiduciary standard, plus you get to pay 1 percent of more of your financial assets to end up with up to a 20 percent chance of becoming destitute in retirement. No one in their right mind would want to put their spending on autopilot independent of how well their investments perform. And putting 80 percent of your assets in equity when you retire is asking for major trouble particularly given you are being told to keep spending the same amount even when the market tanks. In this podcast, Larry takes you through MaxiFi Planner's Full Risk Investing analysis. He recently posted a podcast on MaxiFi's Upside Investing. Topics Covered: **Investment Strategies and Risk Management**: *Economic-Based vs. Conventional Financial Planning* **The power of MaxiFi Planner and Financial Tools**: *Concept of Consumption Smoothing* Timestamps: 00:00 investing and risk analysis. 07:09 Deterministic planning for maximizing investment with tax implications. 10:50 Economic planning: Smooth living standard, balanced spending. 14:45 Use case and example scenario. 16:04 Increased living standard, investing and converting trajectory. 19:59 Stock accumulation, Monte Carlo simulation, gradual withdrawals. 31:19 Investing in risk affects living standard outcomes. 33:51 Maintain spending in retirement without market dependency. 36:01 Risk aversion affects happiness in spending losses. 41:58 Investing involves risk and cautious spending. 44:14 Conventional planning may not be suitable. This discussion is particularly valuable for anyone seeking to improve their financial decision-making processes. By incorporating insights from both economic theory and practical tools. You will walk away with the knowledge needed to take control of your financial future confidently. ------------------------------------------------------------------------------------------------------------- Economic Matters - The podcast is hosted by Laurence Kotlikoff. Laurence Kotlikoff is a Boston University Economist, a NY Times Best Selling Author, President of maxifi.com, and Author of Money Magic. Facebook   / kotlikoff   Twitter   / kotlikoff   LinkedIn   / laurencekotlikoff   Substack https://larrykotlikoff.substack.com/ Books https://kotlikoff.net/books/ Company https://maxifiplanner.com/ Available wherever you listen to podcasts Apple Podcasts: https://podcasts.apple.com/us/podcast... Google Podcasts: https://podcasts.google.com/feed/aHR0... Spotify: https://open.spotify.com/show/3rq6Y2Y... iHeart: https://iheart.com/podcast/123761799/ Pandora/SiriusXM: https://www.pandora.com/podcast/econo... Amazon Music: https://music.amazon.com/podcasts/a91...