ZVI BODIE is the Norman and Adele Barron Professor of Management at Boston University. He holds a PhD from the Massachusetts Institute of Technology and has served on the finance faculty at the Harvard Business School and MIT’s Sloan School of Management. In recent years, Bodie has been a prominent advocate for the financial protection of small investors and has written widely on this subject. Professor Bodie has worked closely with numerous professional institutions, including the CFA Institute, the Federal Reserve Bank of Boston, the Retirement Income Industry Association, and the Society of Actuaries.RACHELLE TAQQU is a financial consultant with many years of experience in the financial services industry. In recent years, she has worked closely with several nonprofit institutions on their endowments.

"Bodie and Taqqu have staked out important ground in terms of reconsidering the basic paradigm for long-term saving and investing and presenting a new approach in an engaging and thoughtful manner." (Portfolio.com, February 2012) "...a good read for those of you who are skeptical of investing in today's stock market. But it is a must-read for those of you who actually think that you know what you are doing." (Huffington Post, January 2012)

• Foreword ixPreface xvAcknowledgments xxvPart I All About You 1Chapter 1 Changing the Game 3Chapter 2 Picturing Your Destination 17Chapter 3 Paying Up 31Part II Risk Matters 47Chapter 4 The Mismeasure of Risk 49Chapter 5 The Allure of Hope 65Chapter 6 Your Personal Risk Profile 85Part III Building Blocks 99Chapter 7 Finding the Safe Investment Zone 101Chapter 8 The Art of Matchmaking 125Chapter 9 Investing Safely for Education 139Chapter 10 Choosing Risky Investments 147Chapter 11 How to Choose an Advisor 167Epilogue 175Notes 181About the Authors 189Index 191

ZVI BODIE is the Norman and Adele Barron Professor of Management at Boston University. He holds a PhD from the Massachusetts Institute of Technology and has served on the finance faculty at the Harvard Business School and MIT’s Sloan School of Management. In recent years, Bodie has been a prominent advocate for the financial protection of small investors and has written widely on this subject. Professor Bodie has worked closely with numerous professional institutions, including the CFA Institute, the Federal Reserve Bank of Boston, the Retirement Income Industry Association, and the Society of Actuaries.RACHELLE TAQQU is a financial consultant with many years of experience in the financial services industry. In recent years, she has worked closely with several nonprofit institutions on their endowments.

"Bodie and Taqqu have staked out important ground in terms of reconsidering the basic paradigm for long-term saving and investing and presenting a new approach in an engaging and thoughtful manner." (Portfolio.com, February 2012) "...a good read for those of you who are skeptical of investing in today's stock market. But it is a must-read for those of you who actually think that you know what you are doing." (Huffington Post, January 2012)

• Foreword ixPreface xvAcknowledgments xxvPart I All About You 1Chapter 1 Changing the Game 3Chapter 2 Picturing Your Destination 17Chapter 3 Paying Up 31Part II Risk Matters 47Chapter 4 The Mismeasure of Risk 49Chapter 5 The Allure of Hope 65Chapter 6 Your Personal Risk Profile 85Part III Building Blocks 99Chapter 7 Finding the Safe Investment Zone 101Chapter 8 The Art of Matchmaking 125Chapter 9 Investing Safely for Education 139Chapter 10 Choosing Risky Investments 147Chapter 11 How to Choose an Advisor 167Epilogue 175Notes 181About the Authors 189Index 191

ZVI BODIE is the Norman and Adele Barron Professor of Management at Boston University. He holds a PhD from the Massachusetts Institute of Technology and has served on the finance faculty at the Harvard Business School and MIT’s Sloan School of Management. In recent years, Bodie has been a prominent advocate for the financial protection of small investors and has written widely on this subject. Professor Bodie has worked closely with numerous professional institutions, including the CFA Institute, the Federal Reserve Bank of Boston, the Retirement Income Industry Association, and the Society of Actuaries.RACHELLE TAQQU is a financial consultant with many years of experience in the financial services industry. In recent years, she has worked closely with several nonprofit institutions on their endowments.

"Bodie and Taqqu have staked out important ground in terms of reconsidering the basic paradigm for long-term saving and investing and presenting a new approach in an engaging and thoughtful manner." (Portfolio.com, February 2012) "...a good read for those of you who are skeptical of investing in today's stock market. But it is a must-read for those of you who actually think that you know what you are doing." (Huffington Post, January 2012)

• Foreword ixPreface xvAcknowledgments xxvPart I All About You 1Chapter 1 Changing the Game 3Chapter 2 Picturing Your Destination 17Chapter 3 Paying Up 31Part II Risk Matters 47Chapter 4 The Mismeasure of Risk 49Chapter 5 The Allure of Hope 65Chapter 6 Your Personal Risk Profile 85Part III Building Blocks 99Chapter 7 Finding the Safe Investment Zone 101Chapter 8 The Art of Matchmaking 125Chapter 9 Investing Safely for Education 139Chapter 10 Choosing Risky Investments 147Chapter 11 How to Choose an Advisor 167Epilogue 175Notes 181About the Authors 189Index 191