Economic Realities was created to bring industry experts together to benefit financial advisors and individuals seeking to improve their financial outcomes.
In this premiere episode, host Chris Battagia and Larry Kotlikoff provide a critical perspective on various aspects of financial planning, emphasizing the need for more realistic and economically sound approaches to planning for longevity and retirement.
They also discussed:
- The importance of planning for longevity and the economic challenges it presents, emphasizing the need to plan for one's maximum age of life rather than just life expectancy.
- Critiques of the current state of the financial planning industry, highlighting its disconnection from economic theory and its tendency to recommend patently absurd financial behaviors.
- Parallels between the issues in personal financial planning and corporate pension and retirement planning.
- The use of averages in both personal financial planning and pension fund investments.
- The consequences of ignoring risk and the challenge of accurately accounting for inflation.
- The concept of upside investing, which involves a combination of safe assets and stock market investments, ensuring a floor for living standards and potential for upside growth.
- The role of the stock market in individual financial planning and the need for a balance between safety and growth.
- The relationship between fiscal policy, printing money, and potential inflation.
Related: The US Capital Glut and Other Myths