Description
You must be aware of the value, potential return and risk of your human capital: your job, career and what you do for a living. Human capital is the most valuable asset that you will own over your lifecycle. You need to balance 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
Introduction: Pensions Are Dying; Long Live Pensions 1
Chapter 1: You, Inc. 13
Chapter 2: Insurance Is a Hedge for Human Capital 37
Chapter 3: Diversification over Space and Time 55
Chapter 4: Can Debt Be Good at All Ages? 85
Chapter 5: Personal Inflation and the Retirement Cost of Living 103
Chapter 6: Sequence of Investment Returns 115
Chapter 7: Longevity Is a Blessing and a Risk 137
Chapter 8: Spending Your Retirement in a Risky World 149
Chapter 9: Annuities Are Personal Pensions 165
Chapter 10: Product Allocation Is the New Asset Allocation 187
Chapter 11: Conclusion: Plan for Managing Your Retirement Risk 207
Appendix: Additional References and Notes 217
Purchase Info 
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Are You a Stock or a Bond?: Identify Your Own Human Capital for a Secure Financial Future, Updated and Revised, CourseSmart eTextbook
Format: Electronic Book
$14.99 | ISBN-13: 978-0-13-311535-2
