In this episode I delve into the nuanced world of life insurance with 2 groundbreaking tools that he developed, MaxiFi Planner and Maximize My Social Security. Both tools help individuals and advisors optimize financial planning and Social Security benefits.
I challenge traditional life insurance advice, arguing that it often fails to account for the unique fiscal circumstances of each family. Showing how as an advanced software program, MaxiFi makes intricate financial calculations, breaking down taxes and insurance needs into tangible figures that truly reflect an individual's or family's situation. This revolutionary approach offers a personalized perspective, significantly different from the broad-brush methods commonly used. It is important to note, MaxiFi is an educational tool. Neither I nor anyone at Economic Security Planning, Inc. is a financial professional. Hence, you need to consult a professional before purchasing life insurance. But make sure your professional uses MaxiFi to help in formulating their advice.
Topics Covered:
Advanced Financial Calculations
Life Insurance Needs and Living Standards
Contingent Planning for the Future
Expert Insights and Practical Advice
Time Stamps:
00:00 Choosing life insurance, software maximizes financial planning.
03:24 Study on life insurance, leading to software.
10:00 Program timeout caused temporary disconnect, discusses housing expenses.
13:31 Discretionary spending drops as child leaves household.
16:58 Couple adjusts living standard based on age.
20:45 Life insurance declines as wealth accumulates.
22:33 Frank's financial plan if Jane dies.
28:26 Life insurance coverage and costs as you age.
32:11 Jane needs less life insurance due to children.
33:22 Comparison of living expenses for three people.
38:51 Survivor reports ensure consistent living standard.
40:53 Tax implications vary with number of children.
46:28 Frank needs au pair if Jane dies.
49:47 Jane needs lower life insurance, discretionary spending.
51:57 Survivor benefits available, impacts life insurance needs.
55:12 Financial advice: be cautious, conservative, and educated.
Economic Matters - The podcast is hosted by Laurence Kotlikoff, a Boston University Economist, a NY Times Best Selling Author, President of maxifi.com, and Author of Money Magic.
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