Description

Traditional corporate pensions are disappearing. Social Security's future is in doubt. Healthcare costs are skyrocketing. Everywhere you look, society is dumping more financial risk onto your shoulders. Now, top financial planning expert Moshe Milevsky shows how to protect yourself from those risks and guarantee yourself sufficient retirement income you'll never outlive. Milevsky begins by explaining why you need to think of yourself as a company: with your own assets, liabilities, balance sheet, income statement, and real shareholder equity. You'll learn how to make financial and investment choices based on the nature and security of your career: "You, Inc.'s" changing capital structure, risk profile, and goals. (If You, Inc. behaves like a high-risk stock, balance your portfolio with bonds and other lower-risk investments and vice versa.) Milevsky shows how multiple investments can work together to protect your retirement and how to choose the right roles for 401Ks, IRAs, savings plans, insurance, annuities, and other financial vehicles. Throughout, he uses simple charts, graphs, and tables to illuminate his ideas and make them as easy to use as possible. Milevsky is one of the nation's most highly sought-after speakers on retirement planning: he brings his message to more than a hundred audiences each year. In this book, he integrates everything he's learned into a powerful, unified program for protecting your family's future, and your own, no matter what.

Features

For the growing number of Americans who do not have access to a Defined Benefit (DB) pension plan, they must figure out how to generate a sustainable income they cannot outlive. This book provides the answers. A new and effective way of thinking about financial planning that helps people more feel more secure and effective in their financial decision making.

People need to take a much broader look at their "personal balance sheet", and start managing all financial risks in their lives accordingly. Heavily illustrated with many easy to read charts, graphs, and tables to clarify the most important concepts in the book.

Table of Contents

Preface: How Much Risk Are You Really Handling? xiii
Introduction: Pensions are Dying; Long Live Pensions xvii
Chapter 1: You, Inc. 1
Chapter 2: Insurance Is a Hedge for Human Capital 21
Chapter 3: Diversification over Space and Time 37
Chapter 4: Debt Can Be Good at All Ages 59
Chapter 5: Personal Inflation and the Retirement Cost of Living 75
Chapter 6: Sequence of Investment Returns 87
Chapter 7: Longevity Is a Blessing and a Risk 107
Chapter 8: Spending Your Retirement in Monte Carlo 117
Chapter 9: Annuities Are Personal Pensions 141
Chapter 10: Product Allocation Is the New Asset Allocation 163
Chapter 11: Conclusion: Plan for Managing Your Retirement Risks 185
Appendix: Additional References and Notes 195
Index 201