The past few years have shocked and dismayed investors who had been relying on the stock market to pay for their future goals. After 20 years of almost uninterrupted gains, stock prices have declined sharply. Millions of Americans who had believed the mantra that stocks are unbeatable in the long run are now worried about achieving their retirement goals and their hopes of paying college tuition for their children.
Are you one of these worried investors? If so, this book is for you. In these pages you will learn that:
Inside these pages, you make some important evaluations and ask yourself the most important question of all in relation to investment and risk, which is, "How much can I afford to lose?" With that in mind, you will consider several ways to substantially reduce your risk to its lowest possible level. The objective, by the end of this book, is for you to understand and implement a plan for worry-free investing.
The simple formula that governs this entire approach is for you to know and use ways to invest that take less chances--ones that are backed by guarantees or that hedge the taking of chances. Why is this important to you? Because investing in ways that take chances (whether in the stock market, 401(k) plans, or mutual funds) can make great gains, but can as readily make great losses(as we all have witnessed). The only way to eliminate worry is to eliminate risk. If making consistent investment gains with as little worry as possible is your objective, then this is the book for you.
"This book is a must for those timid souls who don't enjoy risk taking . . . like me."
--Franco Modigliani, Nobel Prize Winner, Economics
"Worry-Free Investing will enable you to achieve your retirement plans no matter what the stock and bond markets are doing. Bodie and Clowes present a safe way to build and control wealth. The methods are thoroughly and simply explained. Yet, the ideas stem from rigorous research and state-of-the-art science. This book is just what millions of investors need in these tough times."
--John R. Nofsinger, Finance professor, Washington State University, author of Investment Madness, Investment Blunder, and Infectious Greed
"Zvi Bodie and Michael Clowes have presented the proverbial 'missing link' to reliable investment management and worry-free financial planning. Considering the thousands of books available on equity investing, there is a remarkable shortage of information on risk-free bond and alternative income asset classes. This unique book will single-handedly help you balance your knowledge base as well as your portfolio.
"Uncomplicated and unbiased, this is a must read for everyone who needs to provide themselves with a sustainable income throughout their retirement. You won't find this material in any other investment book. When you are done lend your copy to a Financial Planner."
--Barry Cook, Do-It-Yourself Investor
"Bodie and Clowes' book is the most timely personal finance book of the year. Retirement investors, severely affected by the dot-com market bubble and employers' 401(k) malfeasance, are given simple ideas that will restore their hope in planning for retirement. It is a clarion call for 401(k) innovation and adding choices for TIPS (Treasury) bonds and equity funds containing downside protection. Such sensible, powerful retirement advice is truly a public service. Both authors deserve the Pulitzer Prize!"
--Clinton E. Day, Chartered Retirement Planning Counselor
"Bodie and Clowes' book is a useful compass for navigating the uncertain and sometimes treacherous waters of investing. Their insights deliver results."
--Louis Columbus, Senior Analyst, AMR Research
"A provocative and powerful debunking of the sovereign myth of equities as the camino real to retirement adequacy. This lucid and assuring guide is like none other in answering the individual investor's call for practical, trustworthy advice for safely achieving financial security. Highly recommended."
--Alan Cleveland, of Counsel to Sheehan Phinney, Bass and Green
Now that you've been betrayed by the stock market, how can you be sure your retirement or college money will be there when you need it? In Worry-Free Investing, two respected investment experts outline the ideal investment program for every investor worried about asset protection. Drawing on three powerful risk-reduction strategies, their plan virtually eradicates risk--and is virtually guaranteed to beat inflation!
The authors first demolish the myth that a diversified stock portfolio is your safest long-term investment. Next, they introduce U.S. government-backed investments that are protected against inflation and outline little-known investment techniques that are ideal for risk-averse investors.
Once you're sure your fundamental needs are covered, Worry-Free Investing helps you decide when to consider modest risk in the pursuit of higher returns--and how to strictly control whatever risk you do take on.
Clear and easy to understand, Worry-Free Investing is the only book for investors who want to protect their assets, no matter what.
Why the conventional wisdom about stocks is wrong
They are risky no matter what your time horizon
Safe, inflation-indexed U.S. government investments you've never heard of
How to be sure of your returns--regardless of the markets or inflation
Taking charge of your investments with Six Steps to Worry-Free Investing
Reducing your risk to the level that is appropriate for you
Diversification isn't enough
Risk-reduction strategies that work when diversification won't
Controlling the risks you choose to take
Practical techniques for increasing your potential upside while strictly limiting risk
Remember this name -- Zvi Bodie. Bodie is a professor of finance and economics at Boston University School of Management and like many academics has an idea that is theoretically... Read morePublished on Nov. 15 2003
This book has major flaws. First the "worry free" investment strategy relies on a base of Social Security Income, an unrealistic assumption given the demographics of our country. Read morePublished on June 22 2003