Our Articles

These articles by our President, Laurence Kotlikoff, may provide ideas for improving your finances and guide your use of MaxiFi Planner.

Our Articles

Given Current Rates, Cashing Out Your 401(k) to Pay Off Your Mortgage Can Make You a Bundle

The safest investment these days is paying off your debts, including your mortgage.

Five Financial Secrets to Surviving The Greatest Depression

We're in the worst economic downturn in our nation's history. Everyone is being financially impacted. But there are secret ways to survive financially.

Getting House Rich — My Personal Story

You can go from house poor — spending too much or at least more than you'd like on housing — to becoming house rich and you don't necessarily need to downsize your home to extract more value from it. In our case, we upsized our home while still netting a big sum.

Forbes
Should You Take Social Security Early To Weather Coronavirus?

The coronavirus is scary enough, but for far too many of us, it's becoming a financial nightmare.

Does Prepaying Your Mortgage Beat Contributing to Your 401(k)?

These days mortgages are big enough financial and tax losers that you can potentially do better paying them off than contributing to your 401(k)!

The Major Technology Breakthrough to Guide Portfolio Choice

Optimizing retirement outcomes means funding the highest standard of living, both before and after retirement, with a smooth transition in between. Planning for that economics-based outcome, known as “consumption smoothing,” is computationally intensive. But a recent technological breakthrough, which does that smoothing using uncertain asset returns, gives advisors a tool that improves portfolio choice.

At Last! Portfolio Guidance Base on Expected Utility Maximization

Expected Utility Maximization figures out how aggressively or cautiously you should spend and invest your money to produce the highest lifetime happiness averaged over all the different living standard paths you may experience.

Are Target Date Funds Off Target?

Target date funds can be far off target. They can be far too risky when young and far too safe when old. The proper fiduciary default investment is TIPS (Treasury Inflation Protected Securities), not a target date fund.

Making It In LA on $75K

$75K sounds like a great starting salary for a college grad. It's surprisingly not, especially if we're talking making it in LA.

The 70% Replacement Rate In Retirement Is Rubbish

As Kitces suggest, many if not most practitioners interpret the replacement rate rule of thumb as an income replacement rate. Interpreted in that light, this couple's replacement rate is not the vaunted 70%, nor the often higher 85% figure bandied about. Instead, it's zero or essentially zero in seven of the eight cases considered.

The 4% Retirement-Asset Spend-Down Rule Is Rubbish

Conventional financial planning uses two rules of thumb. One is the 70% replacement-rate, retirement-spending rule. The other is the 4% retirement-asset, spend-down rule.

Talking Alimony

Over 4,000 people divorce each day in our country. Some do so after many years of marriage and in the context of very unequal spousal incomes. Such divorces often require alimony to achieve a fair settlement. The question is how much alimony should be provided and for how long? Economics and advanced software can help answer these questions.

Social Security Is Mailing Out Incorrect Benefit Statements

You can’t rely on Social Security to provide accurate information on your options. In my experience, over half of what Social Security staff tell people is either flat out wrong, incomplete, or misleading. But now I've come to lear that you can't even rely on Social Security's benefit statement to be accurate.

Prepaying Your Mortgage Is a Huge Financial Winner

These days mortgages are financial and tax losers. If you have the cash to immediately pay off your mortgage, you can potentially make a bundle with zero risk.

Can Paying Off Your Mortgage Make You A Bundle?

Cashing out your 401(k) and using the proceeds to pay off your mortgage lets you borrow at a low rate and invest at a high rate and do so at no risk.

Are You One Of The 11,000 Widows Social Security Cheated Out Of A Collective $130 Million? If So, Here’s How To Sue At No Cost

Two years ago today, the Office of the Inspector General (OIG) released their report A-09-18-50559 which estimates that over 11,000 widows have been cheated out of more than $130,000,000 — an average of over $10,000 each .

Laurence Kotlikoff, author

Our President, Laurence Kotlikoff, is a Professor of Economics at Boston University. He founded Economic Security Planning, Inc. in 1993 to build economics-based financial planning tools for use by households and financial professionals. Kotlikoff is a prolific writer whose financial planning columns, including his Ask Larry blog, have appeared in a long list of leading publications. His co-authored book, "Get What's Yours -- The Secrets to Maxing Out Your Social Security Benefits," was a NY Times Best Seller.

Media Resources

For media or speaking inquiries, please use our contact form.


Media downloads:
Company Logo
Photo of President, Laurence Kotlikoff