Skip to main content

The Life-Cycle Hypothesis focuses on ensuring a client can maintain smooth living standards over a lifetime when income and savings will vary. This concept, known as consumption smoothing, focuses on a client's annual spending over the cycles they will experience over a lifetime rather than their asset balances and probabilities their plan will fail or succeed. 

Register for this CE-eligible webinar with economist Larry Kotlikoff when he will explain the life-cycle theory and its importance to your financial planning practices. Financial planner Rick Miller will join Larry to share how he uses consumption smoothing to develop investment strategies and insurance recommendations to meet a client's consumption needs.      

Case studies will be presented, using the Maxifi financial planning program, to illustrate how a life-cycle based system can help clients optimize, protect and smooth their living standards across good times and bad.  

The learning objectives of this webinar are as follows: 

  • Understand life-cycle theory and a client's borrowing, saving and dissaving phases
  • Importance of consumption smoothing to a client's financial plan
  • Strategies for optimizing, protecting and smoothing client living standards