by Moshe A. Milevsky
|
| List Price: | $25.99 |
| Amazon Price: | $17.15 & eligible for FREE Super Saver Shipping on orders over $25. |
| You Save: | $8.84 (34%) |
| Average Rating: |  |
| Lowest New Price: | $15.72 |
| Availablitiy: | Usually ships in 24 hours |
|
 |
|
Product Description
"Moshe Milevsky offers an original and clear re-thinking of the most fundamental concept in one's financial lifetime: the management of risk, in all of its not-so-obvious dimensions."--Nick Murray, author, Simple Wealth, Inevitable Wealth "This book is another example of Moshe Milevsky's ability to make the complex understandable...an excellent primer--for both advisors and their clients alike--on the 'How Tos' of effective retirement income planning."--Jim Rogers, CFP, 2008 President, The Million Dollar Round Table (MDRT) "In this new book, the author presents a holistic framework for investors and advisors to think about critical issues that impact investment decisions, such as human capital, mortality risk, and longevity risk. But even more importantly, Milevsky presents practical solutions that we can all follow to achieve financial security throughout our lives. This book is a must-read for everyone in the financial services industry."--Peng Chen, CFA, Ibbotson Associates "This is an extremely timely and valuable book. Our financial lives have never been more complex, and the challenges for many are daunting.Milevsky provides a new perspective that can really help people make better financial decisions and attain a greater level of financial security. "--Matt Greenwald, President, Mathew Greenwald & Associates "The author has written an instant classic that will help people become better-educated retirement customers and also help financial advisors improve their professional skills."--Francois Gadenne, Chairman of the Board and Executive Director, Retirement Income Industry Association (RIIA) "Milevsky delivers one of the best books to date on personal financial planning--a refreshing blend of content, conceptual correctness, and clarity. Buy it. Read it. Do it."--Richard M.Ennis, Chairman, Ennis Knupp & Associates; Editor, Financial Analysts Journal In an era when traditional corporate pensions are disappearing, Social Security' s sustainability is in question, healthcare costs are skyrocketing, and society is dumping more and more financial risk squarely onto your shoulders, Moshe Milevsky helps you comprehensively integrate all the opportunities and risks in your life: your career risks, your portfolio risks, your housing risks, and even your personal inflation and longevity risks that could lead you to financial regret and a ruined retirement. Then, he introduces a powerful, new framework for thinking about and managing your financial future that you can use to systematically reduce your vulnerability to each of these risks and, thus, generate long-term financial security. To maximize your investment returns and protect yourself and your family, you must learn to think of yourself as a small company, with assets, liabilities, a balance sheet, an income statement, and real shareholder equity.The composition and choices you make with your financial capital should reflect the nature and security of your career or job, which is your unique "human capital." So, for example, if You, Inc. is like a "stock," make sure your retirement savings are tilted toward "bonds." If your job is more secure and You, Inc. is essentially a "bond," then make sure your retirement savings are tilted toward "stocks." Get personal with your investments and make your financial capital serve and protect your human capital. Factoring in your unique "human capital" adds a new dimension to financial planning which is a critical next step for sound and effective investing.
Customers who bought this item also bought
Average Customer Review:
2 of 2 people found the following review helpful:
An excellent, easy to read primer, on the issues of retirement planning, 2008-10-05
Wealth Odyssey: The Essential Road Map For Your Financial Journey Where Is It You Are Really Trying To Go With Money?
Dr Milevsky does an excellent job discussing the dual uncertainties of retirement planning: uncertainty of longevity, and uncertainty of portfolio duration. Both deal with trying to determine how long you or your money may last, while recognizing that both time periods need to overlap - in fact one might argue that the portfolio time period needs to be nanoseconds (ideally with perfect knowledge) longer than your longevity. The human capital approach is excellent since it relates the long term economic value of a person's labor, as a total dollar value; to the total dollar value that person needs to sustain their living standard throughout retirement.
There is controversy in the profession concerning the allocation of assets considering the nature of a person's source and nature of their income along with those assets. However, putting concepts out there for discussion is how incremental improvements occur. Another controversial approach has been forwarded in Spend 'Til the End: The Revolutionary Guide to Raising Your Living Standard--Today and When You Retire by Laurence J. Kotlikoff and Scott Burns. Their approach is to smooth your spending over your entire lifetime. Dr Milevsky's approach is to determine how to sustain it. The theme of both works is how to evaluate your standard of living and then how to sustain it in the long run.
Dr Milevsky's formula and excel use if very useful for most people. In practice though, most people would have a hard time determining an expected return and standard deviation for their portfolio especially considering this is a value they expect for the rest of their life. Median remaining lifespan (MRL) also means there's a 50/50 chance of living beyond the period evaluated. A person would reduce the chance of outliving their assets if they used a lifespan factor than had a lesser chance of being outlived. He acknowledges the fact that the older you get, the older you are likely to get in Chapter 7. However, he does not provide the mathematical means in his discussion (even as an appendix) to adjust for this factor should one want to plan more conservatively. One may argue that you would adjust the MRL as you age. However, that would mean that a person is overspending early and would need to retrench their spending as they age, because they would need to stretch the spending farther than what the plan called for originally - once retired there is no replenishment of assets that are already spent.
His book The Calculus of Retirement Income: Financial Models for Pension Annuities and Life Insurance goes into greater detail about the calculus that supports this book.
A final note: the use of variable annuities with their riders is, as yet, untested as to whether the companies selling them can withstand the test of time for both markets and demographic forces. Demographic changes are an important consideration since variable annuity riders are structured where people need to pay in more for the benefits than the benefits that are paid out (the theme sounds much like the Social Security or the pension phenomena he describes in his introduction).
Putting the nit noy of these aside, this is an excellent primer for most people about the issues they face for retirement. Using the concepts here will do more good than harm for most do it yourselfers.
Price is accurate as of the date/time indicated. Prices and product availability are subject to change. Any price displayed on the Amazon website at the time of purchase will govern the sale of this product.
|
Store Categories
|