Rick Miller presented a talk on retirement, Social Security, and retirement planning at a webinar hosted by Maxifi. Here are his insights.
Financial Planning Videos
Incorporating Social Security
When constructing an investment portfolio, the more secure and predictable assets you have, like social security and pensions, the more risk you can take. Rick Miller discusses the lifetime balance sheet and inflation-protected assets like social security.
Expected Returns and the Risk Premium
Returns are unknown, and an individual cannot be certain they will achieve a larger return from one management strategy over another. Rick Miller discusses the how risk premiums should factor into expected returns.
Risk and Goal Flexibility
When talking about investment risk, it is tough to nail down the details of risk tolerance. Risk tolerance: Risk tolerance is the degree of variability in investment returns that one is willing to withstand. Rick Miller discusses the implications of risk tolerance and capacity in living standards.
Uncertain Returns and Utility
What interest rate do you use when planning for life? Rick Miller discusses the use of risk-free rates when planning for returns.
Income Volatility is defined as the variance of income, the divergence from the average. When individuals have risky income, often they are not as concerned with implications of lifetime wealth as they are cash management. Rick Miller discusses income volatility when planning finances for the future.
When planning, you never want to plan too short. Many tend to underestimate, but life expectancy is unpredictable. Founder and CEO Rick Miller discusses the uncertainty in lifespan during financial planning.