371: Examining How Risk Tolerance and Aversion Factors Into Your Retirement Income Plan with Michael Finke, PhD

Retire With Purpose - The Retirement Podcast

Casey Weade

Investing, Business, Self-improvement, Education

4.7 • 564 Ratings

🗓️ 19 June 2023

⏱️ 65 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today, I'm talking to Dr. Michael Finke, Professor of Wealth Management and the Frank M. Engle Distinguished Chair in Economic Security at the American College. He's the Director of the Granum Center for Financial Security, and he's been my professor a few times throughout my career.

I've always been a huge fan of his academic, unbiased approach, and you've undoubtedly seen Michael's work featured here in our Weekend Reading for Retirees email series over the years. He's published over 50 peer-reviewed articles and is widely quoted in many leading consumer publications.

In 2021, he co-authored a research paper titled, Guaranteed Income: A License to Spend with David Blanchett, a previous guest of the show, and also co-hosts the Wealth, Managed podcast with David as well. He's been a tremendous resource to me and many others, and I'm thrilled to talk to him today.

In our conversation, Michael and I talk about how our eating and investing habits are so intertwined, how to find true happiness and your purpose in retirement, and how risk factors into your income planning, regardless of your risk tolerance.

In this podcast interview, you'll learn:

How Michael's first career as a food consumption researcher influenced his economic perspective–and the correlation between healthy eating and investing.
Why our society gets so distracted by outliers in economics and politics.
How risk aversion influences everything we do in investing and retirement.
Why annuities are being used more and more for wealth accumulation instead of lifetime income–and how this is changing the perception of annuities.
Why so many people can't stand to see the numbers in their bank accounts get smaller in retirement–even if they're overfunded.

Show Notes: Howardbailey.com/371

Rate & Review the Podcast: RetireWithPurpose.com/review

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Transcript

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0:00.0	There's only two places your money can go.
0:02.5	It can either be spent by you or it can be passed on to others.
0:06.9	To me, the most important question to ask at a beginning of the retirement income planning process
0:11.4	is of your nest egg, how much do you want to pass on to someone else?
0:15.7	And how much do you want to spend?
0:17.3	And with the portion that you want to spend, let's feel comfortable seeing the balance
0:23.4	fall over time in order to meet your lifestyle goals.
0:36.7	Welcome to the Retire with Purpose podcast, where it is our mission to deliver you clarity and purpose and elevate meaning in your life through purpose-driven strategies and common sense strategies.
0:48.5	Today, we have a very special guest for you.
0:51.2	This is your opportunity to join us for one of our full-length conversations
0:55.4	with Dr. Michael Finca. Who is Dr. Michael Finca? Well, he is the professor of wealth management at
1:02.1	the American College. He's been my professor a couple of times throughout my career. He is also
1:07.0	the director for the Granum Center for Financial Security and the Frank M. Engel
1:12.2	distinguished chair and economic security at the American College. He holds a doctorate in consumer
1:17.6	economics from Ohio State University and a doctorate in finance from the University of Missouri.
1:23.7	He is a nationally renowned researcher. You've seen many of his articles show up in our
1:28.7	weekend reading for retirees email series. I'm a huge fan of Michael, much like many of the other
1:34.6	researchers that we bring here on the show. He takes a very academic, unbiased approach,
1:38.9	and these are the types of people that make a perfect fit for our fans and ultimately for your bottom line.
1:46.0	He has published more than 50 peer-reviewed articles and is widely quoted in many of the nation's leading consumer publications.
1:53.0	With that, Michael, welcome to the podcast.
1:56.0	Thank you, Casey. It's great to be on the podcast.
	...

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