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Monday, April 03, 2006

Book Highlight - Money Logic

Money Logic (Hardcover)
by Moshe A. Milevsky, Michael Posner

Some conclusion: Read the book for the details.

If you retire and look for bonds to live on you odds of running out money is higher than if you have your investment in stocks. Our age span is increasing and the odds are worse for women.

Dollar cost averaging is flawed and generally yields sub par results compared to lump sum investing.

Odds suggest Mutual funds as not likely to out perform an index ETF or fund.
In the long run a cost efficient way to go may be (ETF exchange traded funds or atleast indexed mutual funds).

Don't get into complicated insurance/invesetment sales pitches. Odds are they are not in your favour.

International indexes gives best odds to diversify again risk.

Listen to the odds and not the sales pitch and put them to work in your favor.

Book Highlight - Business 2.0

Business 2.0 by Rich Kalgaard (Forbes Publisher)
Part I - draws conclusion that more professionals are seeing the benefit or relocating to smaller towns and balancing Life and work. (Lots of stories to illustrate this point) The results are less work, less mortgage, more culture, more life and family, more safety, and more truth to "it's not what you earn but what you keep."

Part II - the cheap revolution is on. America and high cost manufacturers are in trouble - The rise of Asia and all things cheap is going to hit companies unprepared for the shift. "law of regression suggests the Purchasing power relativity of Asia will rise over time and that of America will drop.

Part III is on summary of good/cheap places in the US - I skipped this one as I plan to stay in Canada.