Lifecycle Investing

A New, Safe, and Audacious Way to Improve the Performance of Your Retirement Portfolio

ebook / ISBN-13: 9780465021161

USD: $16.99  /  CAD: $20.99

ON SALE: May 4th 2010

Genre: Nonfiction / Business & Economics / Personal Finance / Investing


Diversification provides a well-known way of getting something close to a free lunch: by spreading money across different kinds of investments, investors can earn the same return with lower risk (or a much higher return for the same amount of risk). This strategy, introduced nearly fifty years ago, led to such strategies as index funds.

What if we were all missing out on another free lunch that’s right under our noses?

In Lifecycle Investing, Barry Nalebuff and Ian Ayres — two of the most innovative thinkers in business, law, and economics — have developed tools that will allow nearly any investor to diversify their portfolios over time. By using leveraging when young — a controversial idea that sparked hate mail when the authors first floated it in the pages of Forbes& — investors of all stripes, from those just starting to plan to those getting ready to retire, can substantially reduce overall risk while improving their returns.

In Lifecycle Investing, readers will learn:
  • How to figure out the level of exposure and leverage that’s right for you
  • How the Lifecycle Investing strategy would have performed in the historical market
  • Why it will work even if everyone does it
  • When not to adopt the Lifecycle Investing strategy
Clearly written and backed by rigorous research, Lifecycle Investing presents a simple but radical idea that will shake up how we think about retirement investing even as it provides a healthier nest egg in a nicely feathered nest.

What's Inside

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Robert Shiller, author of Irrational Exuberance
" A most provocative book. The real advantages of time diversification have never been laid out so clearly or with such a program of action."

Tim HarfordFinancial Times
"Here are the chief investment lessons of the financial crisis for today’s young people: they should be buying more shares and running up debts to do so. . . . [T]here is nothing intrinsically risky about regular borrowing to get that fund off to an early start. . . . Not only does the concept make sense, it has paid off in the past. . . . Ayres and Nalebuff have looked at historical stock market data. . . . For every single cohort, the early leverage strategy beat the conventional wisdom."

Moshe A. Milevsky, Ph.D., Finance Professor, York University, and author ofAre You a Stock or a Bond?
“This bold book promotes more early equity exposure for the masses, precisely at a time when many practitioners are re-thinking the ‘buy and hold stocks for the long run’ mantra. Whether you are comfortable with this strategy or not, the book is a must read for anyone who claims to think about their personal finances in a rigorous and logical manner.”
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