Risk Less and Prosper: Your Guide to Safer Investing
A practical guide to getting personal investing right Somewhere
along the way, something has gone very wrong with the way
individuals save and invest. Too often, households are drawn in by
promotional suggestions masquerading as impartial investment
advice. Consumers get saddled with more risk than they realize.
"Bodie and Taqqu have staked out important ground in terms of reconsidering the basic paradigm for long-term saving and investing and presenting a new approach in an engaging and thoughtful manner." ( Portfolio.com , February 2012) "...a good read for those of you who are skeptical of investing in today's stock market. But it is a must-read for those of you who actually think that you know what you are doing." ( Huffington Post , January 2012)
Zvi Bodie is the Norman and Adele Barron Professor of Management at Boston University. He holds a PhD from the Massachusetts Institute of Technology and has served on the finance faculty at the Harvard Business School and MIT's Sloan School of Management. In recent years, Bodie has been a prominent advocate for the financial protection of small investors and has written widely on this subject. Professor Bodie has worked closely with numerous professional institutions, including the CFA Institute, the Federal Reserve Bank of Boston, the Retirement Income Industry Association, and the Society of Actuaries. Rachelle Taqqu is a financial consultant with many years of experience in the financial services industry. In recent years, she has worked closely with several nonprofit institutions on their endowments.
Foreword ix Preface xv Acknowledgments xxv PART I All About You 1 Chapter 1 Changing the Game 3 Chapter 2 Picturing Your Destination 17 Chapter 3 Paying Up 31 PART II Risk Matters 47 Chapter 4 The Mismeasure of Risk 49 Chapter 5 The Allure of Hope 65 Chapter 6 Your Personal Risk Profile 85 PART III Building Blocks 99 Chapter 7 Finding the Safe Investment Zone 101 Chapter 8 The Art of Matchmaking 125 Chapter 9 Investing Safely for Education 139 Chapter 10 Choosing Risky Investments 147 Chapter 11 How to Choose an Advisor 167 Epilogue 175 Notes 181 About the Authors 189 Index 191