Most people don’t have a money problem — they have a thinking problem.
In this episode of Common Denominator, I sit down with economist Laurence Kotlikoff – Boston University professor and creator of MaxiFi financial planning – to unpack the biggest lie we tell ourselves about our financial lives: that we don’t need to look… and it’ll all work out.
Laurence explains why so many of us avoid our numbers (fear, superstition, math phobia), why much of Wall Street’s “standard advice” conflicts with real economics, and why personal finance is far more complicated than people realize — from taxes and inflation to Social Security’s 22,000-page rulebook. We talk through what it actually takes to answer the simplest question that drives everything: How much can I safely spend — and keep spending — without running out?
We also zoom out to the macro questions people feel every day: whether Social Security could be cut, whether AI has created a market bubble, how panic can move markets even when fundamentals don’t, what housing really means as an inflation hedge, and why inflation hurts households so differently depending on how their income and assets are structured.
This conversation is a reminder that “having your finances straight” isn’t about luck, hype, or perfect timing — it’s about getting clear, making sustainable decisions, and using the right tools to avoid leaving massive money on the table.
In this episode you’ll learn:
- The biggest lie people tell themselves about money — and why it’s so common
- Why personal finance isn’t “simple math” (and why most people freeze anyway)
- How to think about spending safely if you live to 100
- What a 23% Social Security benefit cut could mean — and how to plan around it
- Why many households make the wrong Social Security decision and lose big
- Whether AI stocks are overvalued — and how bubbles (and panic) form
- How the market can drop hard even without “fundamental” reasons
- When buying a home makes sense vs. renting — and what people miss
- Why inflation burns some people and spares others (and how to protect yourself)
- The “common denominator” of people who actually stay financially secure
Like this episode? Leave a review here:
https://ratethispodcast.com/commondenominator
Chapters:
00:00 The Biggest Lie We Tell Ourselves About Money
02:23 Welcome + Why We Avoid Our Finances
05:10 Why Financial Planning Is So Complicated
07:34 Math Phobia, Behavioral Avoidance, and Real Solutions
11:23 Social Security “Running Out” + Planning for Benefit Cuts
14:54 AI, Market Valuations, and Bubble Risk
19:50 Panic, Multiple Equilibria, and Why Markets Crash
22:06 Real Estate: When to Buy and How to Think About Risk
25:22 Housing as an Inflation Hedge
27:26 Money Supply, Inflation, and What People Feel Day-to-Day
32:13 America’s Debt, Fiscal Solvency, and Unfunded Liabilities
34:44 Practical Solutions + “You’re Hired” Reforms
41:50 The Common Denominator of Financial Stability
44:11 Final Takeaways + Where to Find Laurence
Follow Laurence:
Website: Kotlikoff.net
Newsletter: https://larrykotlikoff.substack.com/
MaxiFi: https://www.maxifi.com/
Book: Money Magic https://www.amazon.com/Money-Magic-Economists-Secrets-Better/dp/0316541958
🎙 Common Denominator Podcast
Website: https://moshepopack.com/podcast/
YouTube: @mpopack
Instagram: https://www.instagram.com/mpopack
Facebook: https://www.facebook.com/MoshePopack
Newsletter: https://moshepopack.com/newsletter/