Book description
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 more secure but offers lower financial
upside, you'll 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 you'll
need.
This Edition's updates include:
New 2012 data, charts, figures, and references
More coverage of incorporating "human capital" into financial planning
Advice reflecting the aftermath of the financial crisis
Easier, more usable techniques, and less math!
Table of contents
- Title Page
- Copyright Page
- Praise for the Previous Edition Are You a Stock or a Bond?
- Dedication Page
- Contents
- Acknowledgments
- About the Author
- Preface to the Second (Revised) Edition
- Introduction: Pensions Are Dying; Long Live Pensions
- 1. You, Inc.
- 2. Insurance Is a Hedge for Human Capital
- 3. Diversification over Space and Time
- 4. Can Debt Be Good at All Ages?
- 5. Personal Inflation and the Retirement Cost of Living
- 6. Sequence of Investment Returns
- 7. Longevity Is a Blessing and a Risk
- 8. Spending Your Retirement in a Risky World
- 9. Annuities Are Personal Pensions
- 10. Product Allocation Is the New Asset Allocation
- 11. Conclusion: Plan for Managing Your Retirement Risk
- Appendix: Additional References and Notes
- Index
- FT Press
- Footnote
Product information
- Title: Are You a Stock or a Bond?: Identify Your Own Human Capital for a Secure Financial Future, Updated and Revised
- Author(s):
- Release date: September 2012
- Publisher(s): Pearson
- ISBN: 9780133115338
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