Brayden Warwick

We talked about the equity risk premium and that 3% number being fairly attractive, especially once you consider the risk-free rate and inflation.

How do you think about the role of bonds in portfolios?

Great answer.

Our last question, Elroy, how do you define success in your life?

Yeah, it was pretty cool.

Last time I was on the podcast, I think I left some of the, at least the Rational Reminder community members wanting more nerdiness, wanting to go into more detail into my thought process and how I think about solving problems.

And then Ben, you showed me Michael's paper.

I was pretty blown away by how he was able to create a mathematical model that really got all of those ideas into one model.

And it's a

impressively comprehensive model.

This is really cool to talk to him about how he approached building the model and he had a lot of cool insights.

I think in general, it's really cool, like you said, Ben, to emphasize the importance of analyzing all six of those areas cohesively and that there's trade-offs between the two.

I think Michael provides some examples in the episodes, but being able to understand those trade-offs is a critical role of the planner, but then also understanding the client, understanding the client's objectives and Michael's model.

Those two concepts are extremely important in coming up with the optimal solution.

So where did the well-known theories of lifestyle portfolio choice and consumption fall short in describing what financial planners do?

That was kind of the goal.

So what does the theory suggest about the heterogeneity of optimal financial advice, even for people with identical financial situations?

Your paper does a lot of great work.

It introduces a lot of detailed mathematics to this world of financial planning.

You also included dynamic programming.