لایب سان

توضیحات کتاب :

T o make the objective of this book as clear as possible, consider two very different investors, both in their late twenties. The first investor, Joe, subscribes to several financial publications. He spends an hour or two a month working on and thinking about his financial plan and his portfo- lio. He examines his account statements carefully. He reads the periodic reports from each fund he owns. Joe has also read this book. After he finished reading, Joe sold several high-cost equity funds he had been carrying in his 401(k) plan account and replaced them with a large position in a low-cost fixed-income fund and a smaller position in a U.S. total market index fund. He used most of the money market bal- ance in his personal brokerage account to buy some tax-efficient equity exchange-traded funds (ETFs). Joe used the free retirement planning software that comes with his 401(k) plan to get a clearer picture of what his financial situation might look like after retirement. He has made an ap- pointment with a financial planner to ask some specific questions. Joe is more comfortable with his financial position and his understanding of his investment risks and opportunities than he has ever been before. He is also convinced that he has improved the annual return on his portfolio by at least 2 percent. The second investor, Pete, has a few stocks in his personal brokerage account. He bought them on enthusiastic recommendations from friends, but they have performed badly. Most of the assets in his brokerage ac- count are in a low-yielding money market fund. When he joined his em- ployer’s 401(k) plan, he signed up to put 50 percent of his payroll deductions into an intermediate-term bond fund and 50 percent into a large-cap equity fund. Pete puts his unopened 401(k) statements in a drawer, hoping the fund will grow to take care of him in retirement. He has not taken an inventory of his financial assets and liabilities since he filled out a mortgage application five years ago. He does not know the ex- pense ratios or the performance of the funds he owns in his 401(k) ac- count. Pete has not read this book.