Laurence J. Kotlikoff is a William Fairfield Warren Professor at Boston University, a Professor of Economics at Boston University, a Fellow of the American Academy of Arts and Sciences, a Fellow of the Econometric Society, a Research Associate of the National Bureau of Economic Research, President of Economic Security Planning, Inc., a company specializing in financial planning software, and the Director of the Tax Analysis Center. Professor Kotlikoff received his B.A. in Economics from the University of Pennsylvania in 1973 and his Ph.D. in Economics from Harvard University in 1977.
Each of us must decide how to build and invest our savings. People need to ensure that they have enough income and assets to maintain their living standard at a desired level through time. Traditional financial planning and portfolio management tools tend to focus on the tradeoff between expected returns and risk at a point in time. While these traditional tools provide important investing insights, we demonstrate that a more holistic life-cycle financial planning framework can help form better spending, saving and investment decisions and reduce living-standard risk through time.