But many investors don't know enough about unfamiliarinvestments to make wise choices. Benefits of Diversification: Sample Portfolios. You ve already got tons of books on stocks, bonds, and funds. Previously, Larry was vice chairman of Prudential Home Mortgage. Your Home and the Asset Allocation Decision. Real or Nominal Return Bonds: Which Are Riskier? Correlation with Stocks, Bonds, and Inflation.
Book Description The rewards of carefully chosen alternative investments can be great. Do High-Yield Bonds Have a Role? However, sometimes concentrating a large amount of money in a narrowly focused way, is a way to wealth, perhaps the only way to extraordinary returns; then after the wealth is made, then diversify it in the way that the authors recommend in the remainder of the book. For that reason, financial advisers Larry Swedroe and Jared Kizer designed this book to bring investors up to speed on the twenty most popular alternative investments:. It is a gold mine for even the most experienced of practitioners, and a vital lifeline for small investors. They tell you which ones to walk away from, which to consider carefully! They say diversification is the only free lunch for investors. Possible Reasons to Buy a Variable Annuity. I also wonder whether Andrew Tobias feels ripped off.
Is Higher Yield Worth Higher Risk? The other books in the same series have equally long names: by Larry Swedroe and by Larry Swedroe and Joseph Hempen. Risks and Rewards of Long Maturities. Chapter 10 Socially Responsible Mutual Funds. Mortality Credits Make It Possible. Unique Risk and Return Characteristics.
Hybrid Securities and Asset Allocation. These are good—sense judgments that every investor should pay attention to. If he doesn t like something, he says so. The rewards of carefully chosen alternative investments can be great. How Long Do Payments Continue? I make it a point to read every book written by him. Yes, as one review here stated, some chapters could be in greater depth. Nonetheless some of the chapters provided new information.
Some investors are attracted to alternative investments by high returns, without even considering the added benefit that further diversification can lower the overall risk of the portfolio. . The Realities of Convertible Bonds. Long Maturities and Call Risk. Swedroe and Kizer advise investors to research each one as they would a tour or vacation spot.
Each section concludes with a short summary of their findings. They cited many academic studies to back up their evaluation. About the Authors Larry E. The Equities of Oil Producers. The Proof Is in the Pudding. Long Maturities and Call Risk.
Wolfe, PhD Professor of Finance and Director of the Financial Planning Program, Western Kentucky University At the risk of being clichéd, Swedroe has done it again! This volume is destined to become the most marked and Post-it—noted tome on the average investment shelf. Preferential Treatment for Corporate Buyers. A Travel Guide to Alternative Investments. Mondo National Bank Principal Protection. Real estate, Inflation-protected securities, Commodities, International equities, Fixed annuities, Stable-value funds, High-yield junk bonds, Private equity venture capital , Covered calls, Socially responsible mutual funds, Precious metals equities, Preferred stocks. The Only Guide to Alternative Investments Youll Ever Need is all about the future of investing, the new stuff thatll give you an edge in the twenty-first century.
Swedroe and Kizer evaluate each investment in terms of: Expected returns Volatility Distribution of returns Diversification potential Fees Trading and operating expenses Liquidity Tax efficiency Account location Role in an asset-allocation program Any investor who is considering or just curious about investment opportunities outside the traditional world of stocks, bonds, and bank certificates of deposit would be well-advised to read this book. He pulls no punches, he holds nothing back. There is hardly any fluff. I used these recommendations over the past few years and it clearly made a significant difference in my personal wealth. The E-mail message field is required. Because it deals with alternative investments, this book is not for beginner investors, who should first focus on the core asset classes of stocks and bonds.