Shows how just four simple principles you learned in grade school can be used to manage the most critical money milestones in your life. * *A whole new way to think about your money, drawing on the latest research in psychology, behavioral finance, and personal money management. *Make better decisions about college, homebuying, retirement, insurance, and even kids! *Each chapter will direct readers to an online calculator website that will allow the reader to experiment and play with the various concepts, themselves. This book illustrates how 4 principles inspired by basic arithmetic can be applied to manage the most important financial decisions (money milestones) people face over their entire financial lifecycle. They are: 1. Identify the true value all of your financial resources (ADDITION). 2. Budget for the hidden liabilities in your future (SUBTRACTION). 3. Spend your total resources evenly over time (DIVISION). 4. Prepare for many alternative and unexpected universes (MULTIPLICATION). This book offers a complete framework for thinking about money that's every bit as provocative as Freakonomics. Drawing on the newest research into psychology and personal finance, Milevsky helps you identify the true value all of your resources; budget for hidden liabilities in your future; plan to spend your total resources smoothly over time; and prepare for unexpected events that could upend even the most careful planning. You'll discover why: children are short-term investment liabilities but may be long-term pension assets; winning the lottery may increase your chances of going bankrupt; and giving up control of your retirement nest egg might actually make you happier. The insights are fascinating and useful throughout your life whether you're deciding what to study; contemplating your first home purchase; deciding whether to keep contributing to your 401(k); or considering when and whether to retire. Dr. Moshe Arye Milevsky (Toronto, Canada) is one of North America's most sought-after speakers on financial planning and retirement investing. He is Tenured Professor at York University's Schulich School of Business, and leads its non-profit Individual Finance and Insurance Decision Centre, which researches wealth management, personal finance, and insurance. He has published six books on insurance, investments, and retirement planning, including Are You a Stock or a Bond. The co-founder of The Journal of Pension Economics and Finance , he has been interviewed by BusinessWeek, The Wall Street Journal, The New York Times, Barrn's, Fortune, and Money.
This book provides computational tools that readers can use to flourish in the retirement income industry. Each chapter describes recipe-like algorithms and explains how to implement them via simple scripts in the freely available R coding language. Students can use those skills to generate quantitative answers to the most common questions in retirement income planning, as well as to develop a deeper understanding of the finance and economics underlying the field itself. The book will be an excellent asset for experienced students who are interested in advanced wealth management, and specifically within courses that focus on holistic modeling of the retirement income process. The material will also be useful to current and future wealth management professionals within the financial services industry. Readers should have a solid understanding of financial principles, as well as a rudimentary background in economics and accounting.
This open access book introduces the modern tontine and its applications in retirement and decumulation. Personal financial management in the later stages of life presents unique challenges, and renowned retirement planning expert Dr. Milevsky proposes the modern tontine as a solution. With the goal of guiding professionals and retirees in more efficient decumulation, the book demonstrates how to build a modern tontine. It is technically oriented, employing a cookbook format, featuring R code, and examining retirement planning through a statistical lens. This how-to guide, which is a sequel to his 2020 book “Retirement Income Recipes in R”, will be invaluable for retirement planning professionals and advisors, as well as for PhD scholars in retirement planning, quantitative finance, and related fields. This book is open access.
This book studies King Charles II's decision to stop all payments from his royal exchequer, a sordid but little-known event in English history with eerie similarities to the cause of the Great Recession of 2008. As with any modern banking crisis, the financial system in 1672 almost collapsed, day-to-day commerce ground to a halt, houses were lost, and ordinary investors suffered—but there was no banking bailout, and no mercy for the goldsmith-bankers who had lent the king millions to fund his unsustainable lifestyle. The royal decision, made in the wake of plagues, fires, and war with the Dutch, left bankers unable to cover their own liabilities and, in the days before bankruptcy, they couldn’t walk away from their obligations and start fresh. Many bankers spent the end of their lives in debtors' prison, but English commoners had little sympathy for the plight of rich financiers—a sentiment echoed after the financial crisis of 2008. Ultimately, this book tells the complete story of the Merry Monarch's financial default (England's first and last) using the lens and language of modern financial products and markets. It covers the precarious history leading up to the infamous day in 1672, the intrigue surrounding the ‘stop’—including those who traded on inside information beforehand—and the attempt by distressed creditors to gain financial restitution.
This open access book introduces the modern tontine and its applications in retirement and decumulation. Personal financial management in the later stages of life presents unique challenges, and renowned retirement planning expert Dr. Milevsky proposes the modern tontine as a solution. With the goal of guiding professionals and retirees in more efficient decumulation, the book demonstrates how to build a modern tontine. It is technically oriented, employing a cookbook format, featuring R code, and examining retirement planning through a statistical lens. This how-to guide, which is a sequel to his 2020 book “Retirement Income Recipes in R”, will be invaluable for retirement planning professionals and advisors, as well as for PhD scholars in retirement planning, quantitative finance, and related fields. This book is open access.
This Element is an excerpt from Your Money Milestones: A Guide to Making the 9 Most Important Financial Decisions of Your Life (9780137029105) by Moshe A. Milevsky. Why millions of people should rent, not buy--and keep renting as long as possible! Many individuals should not own a house-or they should at least delay the purchase as long as possible"--Resource description page.
This book provides computational tools that readers can use to flourish in the retirement income industry. Each chapter describes recipe-like algorithms and explains how to implement them via simple scripts in the freely available R coding language. Students can use those skills to generate quantitative answers to the most common questions in retirement income planning, as well as to develop a deeper understanding of the finance and economics underlying the field itself. The book will be an excellent asset for experienced students who are interested in advanced wealth management, and specifically within courses that focus on holistic modeling of the retirement income process. The material will also be useful to current and future wealth management professionals within the financial services industry. Readers should have a solid understanding of financial principles, as well as a rudimentary background in economics and accounting.
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