"Conventional investment wisdom be damned′ could be the title to this outstanding book! The subtitle could be ′the key to sleeping well.′ Bodie–Taqqu present a path for individuals that can lead each of us to financial and retirement security."
DALLAS L. SALISBURY, President and CEO, Employee Benefit Research Institute
"Professor Bodie has been a tireless advocate for improving investors′ understanding of risk. In Risk Less and Prosper, he and Rachelle Taqqu have converted those principles into a practical, easily understood road map that individual investors can effectively implement. By demonstrating how individuals can develop their ′life balance sheet,′ Zvi and Rachelle provide readers with valuable tools to determine what risk means to them, evaluate their risk tolerance, and plan for their most financially important life goals."
STEPHEN M. HORAN, PHD, CFA, CIPM, Head, University Relations and Private Wealth, CFA Institute
"Many of the teachings in Bodie and Taqqu′s new book may seem unbelievable to novices and perhaps surprising even to professionals. Too many, for instance, believe equity risk dissipates over time, but the authors show that risk actually increases. Bodie and Taqqu define risk as the capacity a person has to fall short of a financial need or goal. Their redefinition or unveiling of the truth about investment risk is much needed and refreshing. Eyes wide open, investors can then go on to make sure they′re not risking more than they can afford to lose. If you are looking for a ′get rich quick′ formula, you won′t find it here. Instead, you′ll receive honest and sage advice on how truly to risk less and prosper."
STACY SCHAUS, Senior Vice President, PIMCO
"Bodie and Taqqu′s book Risk Less and Prosper is a masterful client–level financial guide to safety–first investing throughout one′s lifetime. It complements RIIA′s curriculum for the Retirement Management Analyst (RMA) certification and will soon be required reading."
FRANÇOIS GADENNE, Chairman and Executive Officer, Retirement Income Industry Association (RIIA)
"Bodie and Taqqu′s Risk Less and Prosper is a marvelous, easy–to–read guide to financial health. Buy two copies one for yourself and one for your financial planner!"
LAURENCE KOTLIKOFF, William Fairfield Warren Professor of Economicsat Boston University; author of Jimmy Stewart Is Dead: Ending theWorld′s Ongoing Financial Plague with Limited Purpose Banking
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
About the Authors 189