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Financial Planning Done Well Is A Wealth Transformation

Four Simple Steps To An Optimal Financial Plan

Two Revealing Examples Of Tangible Benefits

 “At the top 50 economics departments in the country, not a single professor of finance or economics would teach even 10 minutes worth of conventional financial planning because we don’t think it is appropriate, we think it gives exactly the wrong advice.”

Larry Kotlikoff, Economics Professor at Boston University.

You can do optimal Financial Planning just by understanding the following steps:

  1. The widespread adoption of productive financial planning is chronically low and the weakest component of most investor’s financial situation. There are good reasons for that, but the gains from straightening this out with a few good steps are usually transformational.
  2. In general, financial service companies have done a poor job of delivering useful and actionable financial planning advice. Know why and what you need to look for.
  3. Over the last year the best process for doing an optimal financial plan has become even better. The solution is cheap, you can do it yourself, and also get the level of competent and experienced PHD level support you choose.
  4. The benefits that flow from a good financial plan done well can be significant. Most investors do not understand how much or even why that is.

Let’s get you on track right away.

The data below shows how difficult it is for most people to properly address their financial planning. First of all most people just don’t want to.

Rich or poor, young or old, black or white, red or blue, financially literate or not, the vast majority of us are financially sick. We save too little, borrow too much, retire too soon, take Social Security too early, and bank on dying on time. Indeed, many of us seem to have a financial death wish. Consider these facts about today’s workers.

Three-in-four undersave for retirement. One-in-four has zero retirement savings. One-in-four doesn’t participate in their company’s 401(k). Three-in-five gamble routinely. Four in five borrow beyond their means. More than half retire very early — at 62, on average. A quarter underestimate their life expectancy. Half face a lower living standard in retirement.

Only 40 percent feel they are saving enough. Of course, saving enough requires financial planning. But two-in-three workers don’t have a financial plan! They are in elite company.

In general, financial service companies have done a poor job of delivering useful and actionable financial planning advice. Know why and what you need to look for.

One reason for poor engagement is that most investors find it difficult to know where to find good guidance or advice. Not just that! Financial Planning is actually quite complicated. All this can be resolved, and surprisingly without much difficulty, but you have to make the right first steps, and navigate away from conventional plans, which I rejected 45 years ago when my job was auditing pension plans!

“Stay Clear Of Conventional Planning And Conventional Planners.”

“Not a single decent economics or finance PhD program teaches conventional planning – for a clear reason. It’s predicated on behavior that’s at total odds with economic fundamentals, not to mention common sense – producing recommendations that no one in their right mind would follow.”

Larry Kotlikoff, Economics Professor at Boston University.

 There are multiple challenges facing retirees today:

  1. Economic Policy is now on tilt, Government debt growth is unsustainable.
  2. The greatest problem being that inflation has become a major long-term concern.
  3. Retirement benefits typically no longer have employer insurance.
  4. Insurance policies may be only a partial solution.
  5. Tax planning can make a huge difference.
  6. Real estate needs a different perspective in retirement.
  7. Investment needs very careful planning and skilled execution.
  8. Sadly, most Financial Plans fall short of providing reliable sound guidance.
  9. Join a network with experienced PhD financial planners for a second opinion, best practice, and advocacy if needed.

In order to address all these components, you can break them down into simple steps with the right approach and structure. This does need some focus and attention at the outset. Good advice may be hard to find and the stakes are high! Fortunately, the answer is simple.

Over the last year the best process for doing an optimal financial plan has become even better. The solution is cheap, you can do it yourself, and also get the level of competent and experienced PHD level support you choose.

After 45 years as a financial professional, I have learnt that the key to productive financial planning is to avoid all conventional financial planning and use by far the best approach and software,  Maxifi.

 Maxifi takes a completely different approach:

  1. It focuses results on lifetime sustainable spending in its assessment. This is the key end result that is needed, post tax, post investment. It’s the ultimate baseline for your plan. Every variation you want to consider can be measured against a sound benchmark.
  2. The baseline needs to be set without any assumptions influencing the result. All assumptions, which most other plans need introduce inaccuracy into any plan, and dominate the results which become increasing unreliable for decision making, even before applying tax and other key factors.
  3. Maxifi does not play games with “running out of money before you run out of life”. The assumption about when you might die is also eliminated.
  4. Once you have completed your baseline plan, however, you can also “what- if” any and all assumptions, but from a place where you are first grounded in reality.
  5. Maxifi is now introducing remarkable new tools. One of the biggest components of an optimal financial plan is that it can produce optimization for tax planning, and Medicare premiums, which are highly complicated but can produce enormous savings, as well as alert you to common pitfalls in your current arrangements.
  6. Maxifi is cheap. You can do it yourself if you prefer, and it comes with three different experienced PHDs for backup with your planning in addition to your advisor if you use one.

The benefits that flow from a good financial plan done well can be significant. Most investors do not understand how much or even why that is. How much can you save? You will be surprised. Two examples show the results can be best described as a complete transformation.

Example One. Are you House Rich? Or are you House Poor?

Make sure you are not just wealthy but also not house poor! The differences of how you  look a real estate are transformative and can transform your retirement along with other key  factors. Here is how you can quantify how a few changes can transform the rest of your life.

Some of the most important components of Financial Plans are rarely addressed. The  example below demonstrates how to optimize real estate, retirement date and social security.

This example almost doubles their lifetime discretionary spending capability!

A Real-Life Case Study.

Professor Kotlikoff discusses how you can rescue your retirement with a live walk through of the Maxifi Planner, developed by ⁠Economic Security Planning, Inc.⁠ He shows how the average person can almost double their pre- and post-retirement living standard and do so with no risk. Every household is different. But this podcast will show you the money magic that economics-based planning software can deliver and give you ideas of how you can rescue your own retirement. Topics Covered: Impact of Financial Decisions on Retirement A comprehensive walk through of the Maxifi Planner Software Optimizing Social Security Benefits

Time Stamps: 00:00 Underutilized tax-saving programs lead to retirement shortfall. 03:40 Retirement account reliance, Social Security concerns, solutions. 08:41 Economic security planning challenges traditional financial advice. 12:37 Retirement age assumption: plan for age 100. 14:59 Maxifi planner protects against unexpected expenses, offers resources. 17:54 Case demonstrating need for retirement rescue plan. 23:38 Market drops in historical recessions, plan safely. 25:37 Plan for living to 100 with spending adjustments. 31:22 Household living standard analysis shows consistent spending. 36:35 Maximize retirement benefits, optimization of annuities. 38:05 Consider lifestyle changes to increase future income. 43:15 People are paying more taxes due to work. 47:14 Financial decisions in retirement: expenses, location, and planning. 48:39 Plan for discretionary spending, taxes, and saving. 52:36 Plan for financial security with customizable software.

Join us in this episode as Professor Kotlikoff demystifies retirement planning with actionable insights and advanced financial tools, ensuring you can take proactive steps towards securing your financial future.

Example 2

What you must know about retirement tax planning. Understand the scale of the problem. Many financial planners, CPAs, and financial advisors do not take on this tax planning task. Yet this can materially alter your retirement.

The latest development in Maxifi, takes the software to a new level. Optimize your tax planning in retirement by reducing your lifetime taxes by 50% or so in many cases.

  1. Few understand how crucial your retirement tax planning has become. The later you find out the more limited your options become.
  2. The best time to take tax planning action is age 59 ½ when you can withdraw savings out of your 401k or IRA without penalty. Every moment you delay after that may impact the efficiency of what you can do. Start preparing for the right steps from age 55. Yes, it’s that important, even though you don’t understand why yet.
  3. The choices you have to make in retirement are multiple and they include healthcare choices crucially at age 65 when you need to make a determination about Medicare enrollment, which most people choose to do
  4. Medicare enrollment is linked with your Social Security. Your income and so also your taxes will be significantly impacted by your security Security Security payments, your Medicare premiums, and your Required Minimum Distributions from your deferred tax pension benefits. If you have failed to plan how this all works out you are hoping to be lucky. It is much better to plan all this out well in advance. The sooner the better.

The place to start is with this video below. Then you will understand the key importance of tax planning in retirement.

Financial planning done well can materially change your life. Yet most people clearly avoid it for a range of reasons. One reason is that conventional financial plans are poorly conceived and the results often have limited if any value.

Maxifi solves that problem and this article describes the enormous benefit this financial planning approach can have on your life. The biggest impediments have not only been solved for you they have been delivered to you at low cost, with excellent support.

Best Practice is a matter of your Best Interest.


Education and a Commitment to Informed Consent is an Obligation.

Chris Belchamber is an IRMAA Certified Planner

Medicare’s IRMAA impacts every retirement plan. Learning how to mitigate it is available via IRMAA Certified Planners designation.

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