This introductory book covers the lifestyle choices faced by the individual over his/her life (the prudent conduct of which leads to early achievement of the elusive financial security goal - FSG), and the nuts and bolts and principles of investments. The individual has four distinct phases in his/her life. Each phase has its unique lifestyle choice-variables and therefore unique codes or rules that need to be recognised and adhered to in order to achieve the FSG as early as possible, and to preserve assets until exodus. Investing also has distinct codes, rules and principles. It is essential to have a good understanding of the financial system, which delivers the main asset classes: the financial asset classes (1) money market investments, (2) bonds and (3) shares. The other assets are real assets and the categories are (1) property, (2) commodities and (3) other real assets (art, antiques, rare stamps and the like).
Description
Content
Reviews
- Four phases of the life-cycle
- Learning outcomes
- Introduction
- Phase 1: newborn to adulthood (0–20)
- Phase 2: adulthood to maturity (20–40)
- Phase 3: maturity to seniority (40–60)
- Phase 4: seniority to exodus (60–80+)
- Other rules which apply throughout or during part of your life-cycle
- Life-cycle of happiness
- The life-cycle and investing
- Bibliography
- The financial system
- Learning outcomes
- Introduction
- Six elements of the financial system
- Element 1: lenders and borrowers
- Element 2: financial intermediaries
- Element 3: financial instruments
- Element 4: financial markets
- Element 5: money creation
- Element 6: price discovery
- Allied participants in the financial system
- Bibliography
- Investment instruments
- Learning outcomes
- Introduction
- Time value of money
- Money market instruments
- Bond market instruments
- Share market instruments
- Derivative market instruments: futures and options
- Real investments
- Investment vehicles
- Foreign investments
- Asset classes
- Bibliography
- Investment principles
- Learning outcomes
- Introduction
- Definition and objective of investment
- Risk-free rate
- Investment environment
- Risk and return
- Investment theories and maxims
- Lessons from the theories and maxims
- Portfolio management
- Asset allocation over the life-cycle
- Bibliography
- Endnotes
This book serves as an introduction to investing, covering both the technical aspects and fundamentals of investing.
A book that presents a great overview of the concept of investment.
Excellent introductory book for the novice investor that needs to establish a road map to accomplish their investment goals. Highly recommended for those individuals who want to take the path towards wealth creation.
