We aim to develop an investment approach that is tailored to your unique risk capacity (how much investment risk you can afford to take) and your risk tolerance (how much risk you feel comfortable taking). We pride ourselves on our sensible approach to investing: we recommend investments you can understand, with a firm focus on reaching your goals.
Financial Planning Videos
Rick Miller, founder and CEO of Sensible Financial Planning, helps clients think in terms of utility maximization. The utility maximization rule states that consumers allocate their income so that the last dollar spent on each product purchased yields the same amount of extra marginal utility. The key takeaway according to Rick are the experiences people enjoy and the benefits of stable consumption.
Website: https://www.sensiblefinancial.com/people/frank-napolitano/ Phone: (619) 573-4131Email: email@example.com
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.
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.
What interest rate do you use when planning for life? Rick Miller discusses the use of risk-free rates when planning for returns.
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.