Home > Store > Finance & Investing > Personal Finance
Are You a Stock or a Bond?: Identify Your Own Human Capital for a Secure Financial Future, Updated and Revised
- By Moshe A. Milevsky
- Published Sep 21, 2012 by FT Press.
- Copyright 2013
- Dimensions: 6" x 9"
- Pages: 240
- Edition: 1st
- Book
- ISBN-10: 0-13-311529-1
- ISBN-13: 978-0-13-311529-1
Register your product to gain access to bonus material or receive a coupon.
Product Author Bios
MOSHE A. MILEVSKY, PH.D. (Toronto, CA) lectures at York University's Schulich School of Business, and is Executive Director of the IFID Centre, a nonprofit that studies links amongst wealth management, personal finance, and insurance. He has published five books and 50+ peer-reviewed articles on pensions, insurance, investments, derivative pricing, and retirement planning. He co-founded the Journal of Pension Economics and Finance, authored The Calculus of Retirement Income, and has delivered seminars at the London School of Economics and The Wharton School. He recently received a Graham and Dodd Scroll Award from the CFA Institute for his work on lifecycle investing.
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!
|
15 of 16 people found the following review helpful
His human capital valuation is inflated and his framework falls apart,
This review is from: Are You a Stock or a Bond?: Identify Your Own Human Capital for a Secure Financial Future, Updated and Revised (Hardcover)
Customer review from the Amazon Vine™ Program (What's this?)
The author valuation of human capital embedded on a personal balance sheet is way inflated. And, it gives you the illusion to be far richer than you really are. This flawed framework leads the author to recommend taking on an absurd investment risk level.Let's work through one of his examples regarding the finances of a college professor (pg. 96 - 99). The professor makes $100,000 a year. He translates this yearly wage into a PV worth several million dollars of a very safe bond portfolio on the professor's asset side of the balance sheet. However, this is an absurd value giving the professor illusion of riches he does not have. It ignores the professor's income taxes, mortgages, property tax, living expenses for his family, etc... If the author wanted to figure out the PV of the professor's earnings stream he should have focused on the professor's yearly net savings after all expenses are paid and not his entire wage before taxes. Given that the author... Read more
3 of 3 people found the following review helpful
Important food for thought on the nature of risk and human capital, but don't use it as an investment guide, By
This review is from: Are You a Stock or a Bond?: Identify Your Own Human Capital for a Secure Financial Future, Updated and Revised (Hardcover)
Customer review from the Amazon Vine™ Program (What's this?)
Many introductory investors are used to thinking about diversification, but they often interpret this to mean buying lots of different stocks in the same industry, and they certainly don't consider risk sufficiently. Moshe Milevsky's work, "Are you a Stock or a Bond?" challenges the reader to think about all of these aspects of their investment portfolio. I found the book especially interesting because the first edition was printed in 2008, before the "collapse", and this newly revised edition is published in 2013. The Preface of the book reads in part, "Alas, exercising much self-control, I resisted the urge to rewrite the entire manuscript to better reflect my current thinking on the proper way to calibrate financial capital with human capital. That said.....I believe the main message of the original....remains exactly the same." As you read through the book, the schizophrenia of this attitude is apparent. Many of the points he brings up are important and often neglected, but...
Read more
2 of 2 people found the following review helpful
A Very Serious and Helpful Discussion For All Ages About Preparing For Retirement, By
This review is from: Are You a Stock or a Bond?: Identify Your Own Human Capital for a Secure Financial Future, Updated and Revised (Hardcover)
Customer review from the Amazon Vine™ Program (What's this?)
Even though 'Are You a Stock or a Bond?' deals with preparing for eventual retirement, there is plenty of information helpful to young people as well. I found out that I'm a stock. I've never really considered that my greatest asset is my own skills and career. The graphs and charts are impressive. I know that because I can still 'see' them in my mind. I will make some changes in my investments as a result of reading 'Are You a Stock or a Bond?'
|
Online Sample Chapters
Pensions Are Dying; Long Live Pensions
Table of Contents
Preface to the Second (Revised) Edition xiv
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
Sample Pages
Download the sample pages (includes Preface, Introduction and Index)
This book includes free shipping!
This book includes free shipping!
eBook (Watermarked)
$29.99
$23.99
Includes EPUB, MOBI, and PDF
About eBook Formats
This eBook includes the following formats, accessible from your Account page after purchase:
EPUBThe open industry format known for its reflowable content and usability on supported mobile devices.
MOBIThe eBook format compatible with the Amazon Kindle and Amazon Kindle applications.
PDFThe popular standard, used most often with the free Adobe® Reader® software.
This eBook requires no passwords or activation to read. We customize your eBook by discretely watermarking it with your name, making it uniquely yours.
- Request an Instructor or Media review copy.
- Corporate, Academic, and Employee Purchases
- International Buying Options
Get access to thousands of books and training videos about technology, professional development and digital media from more than 40 leading publishers, including Addison-Wesley, Prentice Hall, Cisco Press, IBM Press, O'Reilly Media, Wrox, Apress, and many more. If you continue your subscription after your 30-day trial, you can receive 30% off a monthly subscription to the Safari Library for up to 12 months. That's a total savings of $199.
