Risk Less and Prosper: Your Guide to Safer Investing
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More About This Title Risk Less and Prosper: Your Guide to Safer Investing

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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. Authors Zvi Bodie and Rachelle Taqqu understand the dilemma that today's investors face, and with Risk Less and Prosper they will help you find your financial footing.

Written in an accessible style, this practical guide skillfully explains why personal investing is all about you—your goals, your values and your career path. It shows how to understand investment risk and choose the particular blend of risk and safety that is right for you. And it lays out several simple yet powerful ways for small investors to cast a reliable safety net to achieve their financial goals and truly prosper. Coauthors Bodie and Taqqu challenge the myth that all investments require risk, then highlight some important risks that families often disregard when deciding where to put their money. Later, they connect the dots between investment and investor, showing us all how to grasp our own investment risk profiles and how we may use these insights to make more fitting investment choices.

  • Outlines a straightforward way to invest by aligning your investments with your goals and the risk levels you can bear
  • Provides basic investment abc's for readers who are otherwise literate
  • Lays out a simple, actionable plan for achieving your goals
  • Explains the role of risk-free assets and investment insurance in assuring that you reach your most essential goals

Contrary to popular belief, investing doesn't have to be complicated. You can build wealth without taking great risks. Risk Less and Prosper will show you how to make investment decisions that will make your financial life less stressful and more profitable.

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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.

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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

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"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)

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