After years of market growth, we experienced a bear market. Is it time to reassess your risk tolerance and reorganize your financial plan to reflect that?
What If You Die Young? Protect Your Family in Three Easy Steps. Life Insurance Is Just One.
It’s important to make an estate plan that protects your family if you die. Losing a loved one is hard enough without losing your standard of living too.
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.
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.
We work closely with you to understand your lifetime budget, or how much money you expect to live on each year. From that perspective, risk management is the set of insurance products that will allow you and your family to maintain that budget over the course of your lifetime.
Goals Within Life-Cycle Planning
Human Capital and the Life-Cycle Theory
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.