What if financial planning were approached the same way engineers design aircraft, medical treatments, or complex systems—with clearly defined objectives, constraints, and rigorous trade-off analysis? In this episode, Benjamin Felix is joined by Braden Warwick for a deep dive into what it means to engineer financial outcomes. Drawing on Braden's background as a PhD-trained mechanical engineer and his work building financial planning software at PWL Capital, the conversation reframes financial planning as a design problem rather than a speculative exercise. They explore the critical distinction between a financial plan and a financial projection, why uncertainty does not invalidate good planning, and how professional communication under uncertainty can build trust with clients—especially those from technical backgrounds. The discussion highlights the importance of goals-based planning, sensitivity analysis, and explicitly quantifying trade-offs when clients have multiple competing objectives.

Key Points From This Episode:

(0:00:04) Introduction to Episode 393 and the return of Braden Warwick
(0:02:50) Braden's role at PWL and his experience deploying Conquest Planning software
(0:05:46) The tension between low industry entry barriers and professional standards in financial planning
(0:07:54) Braden's background in mechanical engineering and academia
0:09:33) Financial plans vs. financial projections: why uncertainty doesn't make a plan "wrong"
(0:12:59) Lessons from medicine and engineering on communicating decisions under uncertainty
(0:15:15) An engineering framework for financial planning: objectives first, then solutions
(0:18:42) Why surface-level goals like "minimize tax" or "maximize returns" often miss what really matters
(0:21:19) Evaluating plans against goals using projections, scenario analysis, and sensitivity analysis
(0:24:28) Why sensitivity analysis helps planners focus on what actually drives outcomes
(0:29:27) Handling multiple competing goals using trade-off analysis and Pareto frontiers
(0:36:46) Practical ways planners can present trade-offs without complex math
(0:39:25) Case study setup: professional financial planning with corporate clients
(0:40:20) Salary vs. dividends for business owners when optimizing for legacy goals
(0:44:26) Why financial planning software outputs can be misleading without context
(0:48:23) The importance of understanding how planning software calculates key metrics
(0:50:22) Using PWL's free retirement tool to analyze CPP and OAS timing decisions
(0:53:44) Approximating Monte Carlo outcomes using standard error of the mean
(0:56:16) Linking "bad" and "terrible" outcomes to plan success probabilities
(0:58:44) How CPP and OAS deferral affects sustainable spending and downside protection
(1:02:46) What makes PWL's CPP calculator different from typical break-even tools
(1:05:15) Why wage inflation assumptions materially affect CPP deferral decisions
(1:07:46) Closing framework: goals, constraints, sensitivity analysis, and quantified trade-offs
(1:09:36) Financial planning as an emerging discipline rooted in engineering-style thinking

Links From Today's Episode:

Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on YouTube — https://www.youtube.com/channel/
Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Financial planning is built on assumptions — about markets, inflation, longevity, human behaviour, and even the questions clients bring into the room. In this episode, Ben and Braden welcome a diverse panel that originally came together at the FP Canada Conference to explore how those assumptions influence planning outcomes in practice. Joining them are Adam Chapman, a retirement-focused planner who helps clients turn their money into memories; Joe Nunes, an actuary with decades of pension and longevity experience; and Aaron Theilade, Director of Continuing Education at FP Canada. Together, the panel unpacks how to make assumptions credible, how to stress-test them, how to navigate client bias, and how planners can blend math with humanity to create better client outcomes.

Key Points From This Episode:

(0:00:04) Why this episode: recreating a conference panel on planning assumptions.

(0:01:03) Braden on the panel's value for planners and DIY investors.

(0:02:32) Meet the guests: Adam, Joe, Aaron, and Braden.

(0:06:04) Assumptions matter: directional accuracy > prediction.

(0:07:47) Actuarial view: start with inflation, bond yields, and risk capacity.

(0:09:38) Engineering mindset: plan for expected and unexpected outcomes.

(0:13:21) Client pushback: longevity surprises and hidden assumptions.

(0:16:59) Asset allocation: strategic, goal-based, informed by behaviour.

(0:20:57) Software limits: life is too variable for perfect modeling.

(0:22:01) Behaviour gap: retirees spend less over time despite inflation.

(0:25:18) Software guides; planners interpret and humanize outputs.

(0:28:48) Use assumptions based on the specific question (e.g., withdrawals).

(0:30:31) Always ask: "Why are we modeling this?"

(0:34:15) Handling bias: reframe assumptions to reveal inconsistencies.

(0:38:19) Assumptions evolve: returns, spending, and research all change.

(0:42:38) Longevity beliefs: explore "why," not just the data.

(0:50:38) Core truth: every plan is wrong — planning is iterative.

(0:52:20) When to update: depends on age, goals, and material changes.

(0:57:23) PWL approach: twice-yearly updates + adjustments during extremes.

(1:00:03) Tips: focus on behaviour, communication, goals, and integration.

(1:10:02) Success: relationships, impact, freedom, and sharing knowledge.

Links From Today's Episode:

Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on YouTube — https://www.youtube.com/channel/
Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)