Economic Approach to Planning

by Laurence J. Kotlikoff
Professor of Economics, Boston University President, Economic Security Planning, Inc.

Abstract

Let's face it--Uncle Sam is broke. The gap between the U.S. government's future expenses and tax receipts is $63.3 trillion. No surprise. The nation has 77 million retiring baby boomers on track to collect well above $30,000 a year--the average amount we're paying today's elderly--in Social Security, Medicare and Medicaid benefits. If you're planning for a cushy retirement, forget it.

Whether we want to admit it or not, most of us are financially sick. We overspend, underinsure, invest on hot tips, gamble, max out our credit cards, get hooked on Starbucks and spend as little time as possible thinking about the future. Most of us end up in old age living off Social Security.

Economics’ Approach to Financial Planning
by
Laurence J. Kotlikoff, Ph.D.

Executive Summary