The Life-Cycle Theory recognizes that there are different stages in life that fade into one another. Rick Miller talks about the three main phases of the lifecycle: human capital development, working and raising a family, and retirement.
Financial Planning Videos
Liquidity and Goals
Liquidity is defined as the availability of liquid assets, such as cash, in a market. Rick Miller discusses the liquidity factors that go into planning for the future.
Risk and the Life-Cycle Theory
Investing is one way to fund future spending. Rick Miller uses the current living standard and spending patterns of clients to predict the risk of potential returns when planning.
Contingent Claims In Life-Cycle Planning
A contingent claim’s payoff is dependent on the realization of an uncertain future event. In life-cycle planning, contingent claims are used to plan for the unpredictability and risks in life. Rick Miller discusses protecting against risk when financial planning.