How to Use Product Allocation to Create a Guaranteed Income for Life
Pensionize Verb. 1. To convert money into income you can`t outlive. 2. To create your own personal pension, a monthly income that lasts for the rest of your natural life.

With the subpar performance of the markets, record-high personal debt levels, and shockingly low savings rates, it`s clear that many Canadians expecting to retire in the next decade simply don`t have a sufficient nest egg to ensure a worry-free retirement. Making matters worse, only about one-third of Canadians currently belong to a formal, or registered, pension plan; and even a large number of that lucky third will not retire with a guaranteed pension income.

If you no longer have the time to wait and hope for your traditional investments to pay off, the answer is to "pensionize your nest egg" using the new technique of product allocation set out in this book.

Analyzing the Nine Most Important Financial Decisions in Your Life
Moshe A. Milevsky Introduces the Principle of Arithmetic Financial Planning

These are difficult economic times, many people have lost their financial savings, their jobs or businesses. Money is more important than ever before, and yet ...

Financial planning for individuals often comes across as an unrelated collection of confusing decisions, each with their own risks, costs and potential rewards. For example: Should I buy a house now? Should I buy this particular insurance policy? Should I invest my 401(k) in a stock fund? What career and job will give me the greatest financial security? Can I afford to have a large family? Can I afford to retire, ever? Etc. The dilemmas are never-ending, regret is frequent and we continue to be bombarded with contradictory suggestions. In other words, most individuals play the game of life without a strategic financial plan.

It is no surprise then that so many people regret the decisions they have made in the last few years.

In contrast to this chaotic and volatile view of personal financial planning, Professor Milevsky argues that there are basically 9 unique financial decisions that everyone faces in their life, AND they should all be managed and connected to each other using the four basic principles of arithmetic. If you can add, subtract, multiply and divide -- and recognize these 9 money milestones in your life -- you can be assured financial success over the entire lifecycle.

In Your Money Milestones: A Guide To Making The 9 Most Important Financial Decisions of Your Life, 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, why winning the lottery may increase your chances of going bankrupt, and why giving up control of your retirement nest egg might actually make you happier.

Create Your Own Pension Plan for a Secure Financial Future
In an era when traditional corporate pensions are disappearing, Social Security` s sustainability is in question, healthcare costs are skyrocketing, and society is dumping more and more financial risk squarely onto your shoulders, Moshe Milevsky helps you comprehensively integrate all the opportunities and risks in your life: your career risks, your portfolio risks, your housing risks, and even your personal inflation and longevity risks that could lead you to financial regret and a ruined retirement. Then, he introduces a powerful, new framework for thinking about and managing your financial future that you can use to systematically reduce your vulnerability to each of these risks and, thus, generate long-term financial security.

To maximize your investment returns and protect yourself and your family, you must learn to think of yourself as a small company, with assets, liabilities, a balance sheet, an income statement, and real shareholder equity. The composition and choices you make with your financial capital should reflect the nature and security of your career or job, which is your unique human capital. So, for example, if You, Inc. is like a stock, make sure your retirement savings are tilted toward bonds. If your job is more secure and You, Inc. is essentially a bond, then make sure your retirement savings are tilted toward stocks. Get personal with your investments and make your financial capital serve and protect your human capital. Factoring in your unique human capital adds a new dimension to financial planning which is a critical next step for sound and effective investing.