Dr. Paul Kaplan

speaker

479 appearances 1 recordings 1 series first heard Jul 2026 last heard 9 Jul

Dr. Paul Kaplan’s voice in public audio — every appearance, attributed to the second.

Trend

recordings per month · last 12 months

Recordings per month over the last 12 months — 1 in all, peaking in Jul 2026 with 1.

Appearances

newest first · ▶ plays the moment

The Rational Reminder Podcast · A Financial Plan For Your Entire Life | #417 (Dr. Paul Kaplan) · 9 Jul 2026 podcast

It takes it into account so that human capital is treated as an asset held long.

Human capital is subject to some of the same risks that financial assets are subject to, namely the risk of stocks and bonds.

And we can go into some more detail about that.

But for now, just to say that the human capital side of the equation is modeled as an asset mix.

And then on the liability side, the liabilities, the present discounted value of future non-discretionary consumption also is modeled as an asset mix as well.

So the optimization that we're performing is not on the assets in isolation as the traditional approach is, but rather on the net worth.

Traditional risk tolerance questionnaires focus on risk tolerance.

They also will typically include questions that are actually not really part of risk tolerance.

They're really part of risk capacity.

How much risk can you take with your financial assets?

And so they might ask questions basically related.

So when do you need the money?

You're investing this money now, and when do you need it?

That's a crude way of trying to get at risk capacity.

We get at risk capacity in a more holistic way.

The other types of preferences, which I mentioned earlier, which are simply not usually accounted for or even attempted to measure in any way, are those preferences related to consumption over time.

There are two particular preferences.

There's one that's called the subjective discount rate, which is basically the idea that to an investor, being able to consume something today is more valuable than

being able to consume it in the future.

So the model says that there's a discount rate that the investor is effectively applying to future consumption so that basically they can compare present and future consumption.

Showing 41–60 of 479 · page 3 of 24