You Must Be Aware Of The Value, Potential Return And Risk Of Your Own Human Capital Your Job, Career And What You Do For A Living As Opposed To Stocks And Bonds Or Other Investment Choices As Well As Financial Capital And Investments To Plan A Secure Future Human Capital Is The Most Valuable Asset That You Will Own Over Your Lifecycle You Need To Balance All Financial Decisions With The Characteristics Of Your Human Capital The Key Trends Identified In The First Edition Of The Book Namely, The Decline Of Defined Benefit DB Pension Provision, The Continued Increase In Human Longevity And The Risk Of Personal Inflation, Are As Relevant Today As They Were Five Years Ago The Financial Crisis Has Taught Us That All Types Of Capital Human, Financial And Even Social Are Key To A Secure Financial Future If Your Career Has Stock Like Growth And Risk Characteristics, Milevsky Helps You Balance Your Portfolio By Tilting Investments Towards Safer Bonds If Your Job Is Secure But Offers Lower Financial Upside, Youll Learn To Tilt Your Investments Towards Stocks That Compensate For Your Lower Earning Potential Either Way, Milevsky Shows You How To Integrate Investments, Insurance, Annuities, And Retirement Plans To Generate The Safe And Reliable Income Youll Need This Editions Updates Include New Data, Charts, Figures, And References More Coverage Of Incorporating Human Capital Into Financial Planning Advice Reflecting The Aftermath Of The Financial Crisis Easier, Usable Techniques, And Less Math I almost didn t pick up this book but opted to review it at the last moment out of curiosityvery glad I did This is the type of book I wish had been available 30 years ago when I was just starting out in life Here is why1 Plain language the author is a rare breed he is able to take complex information and turn it into reader friendly text No small feat especially when it comes to investment information.
2 Assumes little to nothing while much of this information was fairly basic, I actually like the fact that it assumes nothing of the reader This allows someone who is a complete novice to benefit as well as a advanced reader.
3 Tackles different scenario s one of the major positives of the book was that it tackles different scenarios both in the type of investor as well as type of investment Initially I thought the are you a bond or stock was a bit gimmicky but after reviewing the book, it s a nice easy way to introduce the concept in a way that will stick with the reader.
4 Lots of examples, charts and resources this is a personal pet peeve of mine but so many authors have their own agenda, program or etc that they forget to provide resources Not so here Packed full of information, charts, examples, articles and links to resources.
5 Good ideas The author does a good job explaining the need for diversification not just in stocks or bonds but also between job investment, geography etc Managing riskthe real risk of both over and under investing, the real deal on annuititesthat was an especially interesting topic as I actually opted NOT to buy an annuity about 10 years ago for many of the reason cited Today I actually wish I had locked in some of those rates but at least now, I have a much better understanding of what was going on with the fees etcThis is the type of book nearly everyone will learn something from written in a clear, concise and reader friendly manner Now, I do NOT believe in taking anything at face value and as a college instructor, would be 99.
9% unlikely to take some of this advice suggestions to heart On the other hand, the author does show the possibility of using leverage and other risky strategies to perhaps increase overall returns Personally, I tend to view the suggestions as mere possible alternatives to increase my own awareness for any given situation Taken as that, along with the provided tools and resources, it presents several new ideas.
Dr Milevsky explains in simple, easy to understand terms, the factors to consider when planning for retirement His explanation of the options available nowadays with their pros and cons make it easy for the person concerned with building a reliable source of income after retirement to consider the best mix for her future needs.
I got this book for free Good thing.
Extremely interesting book I enjoy reading books on your financial future I figure the informative books I can read helps me tremendously.
The most valuable asset you ll ever own is your human capital Prof Moshe A Milevsky These were the exact same words, in verbatim, that our macro economics professor said to our class in 1990 He went on to say that the difference between what your live can be and what everyone else around is is your ability to learn and constantly invest in your own education Because, as he explained, things change at companies, investments go and down but your ability to adapt to changes in the business environment.
ARE YOU A STOCK OR A BOND with the subtitle Identify Your Own Human Capital For A Secure Financial Future is NOT about what the title insinuates which is what my professor had said some two decades ago identifying, perfecting through upgrading skills education and by utilization practice makes perfect.
This book is a conversation, a thorough erudite discussion on various investment plans stocks, bonds, EFT s, retirement plans what they are, how they work and the risks involved with each venture Do you think like John Maynard Keynes or Peter Lynch How do pensions works What is a Defined Benefit DB Penion plan and how does it differ from a Defined Contribution DC plan Do you accept an annuity as a lump sum, period payouts or do you remit the sum as a Guaranteed Minimum Death Benefit to a beneficiary From there he poses the question, after analysis, of where one might want to invest in or stay away from based solely upon one s perception of themselves This is a bit different, in my opinion, than what the title was proclaiming This is not to say that I don t like the book In fact, I do.
There were several financial concepts that have always bedazzled me and I could never quite get my head around the concept or its purpose The S P, for instance, has always been something I ve glossed over and until now not thought that it would ever be important.
The strength of this book is the way that Mr Milevsky is able to simplify investment concepts and pose simple questions that asks the reader to consider themselves in one situation or another Chapter breakdown Ch 1 You, Inc.
Ch 2 Insurance Is a Hedge for Human CapitalCh 3 Diversification over Space and TimeCh 4 Can Debt Be Good at All Ages Ch 5 Personal Inflation and the Retirement Cost of LivingCh 6 Sequence of Investment ReturnsCh 7 Longevity Is a Blessing and a RiskCh 8 Spending Your Retirement in A Risky WorldCh 9 Annuities Are Personal PensionsCh 10 Product Allocation Is the New Asset AllocationCh 11 Conclusion Plan for Managing Your Retirement Risks This is a very thought provoking book and one that I ll revisit from time to time, however as I went through the book, I longed for two 2 books which I bought some years ago that have now been newly revised.
These books are business themed personal investment but they deal with the psychological and behavioral aspect of successful people What they have in common and how modifying one s behavior will enable one to take advantage of the business opportunities that always presents themselves to people whom are ready.
The Jewish Phenomenon Seven Keys to the Enduring Wealth of a PeopleThou Shall Prosper Ten Commandments for Making Money
This book will interest people who are responsible for their own retirement those without defined benefit pension plans,It describes the problems these people face and the uncertainties that make retirement planning difficult how long will they live, what kinds of returns will they earn and in what order how will inflation affect them There are a lot of words about what might happen and fancy ways of simulating future events Unfortunately there is little certainty,The book mentions some very sophisticated products with which a person can hedge against some risks I hope that these will be better known and available as time goes on They are little mentioned in financial planning materials aimed at consumers.
This book is a good entry point into the author s often much mathematically challenging work.