TD Waterhouse presents MoneyTalk and book review

with Patricia Lovett-Reid, Hon. FCSI, CFP and Senior Vice-President, TD Waterhouse Canada Inc.

Patricia Lovett-Reid is the host of MoneyTalk, a national prime-time television program on personal finance, airing every Monday at 8:00 p.m. ET on the Business News Network (BNN).

Each week, MoneyTalk provides you with useful information about money, investment strategies, and financial planning matters. To view past episodes, please visit the MoneyTalk website at www.bnn.ca/moneytalk

Are You a Stock or a Bond?

Patricia Lovett-Reid reviews the book by Moshe A. Milvesky, Ph.D

The volatility in the markets has everyone second-guessing their retirement strategy. According to Moshe Milvesky, Professor of Finance at the Schulich School of Business at York University in Toronto, now is the time to take control by thinking of yourself as a small company, with assets, liabilities, a balance sheet, an income statement, and real shareholder equity.

For example, he suggests looking at your total net worth — human capital and financial capital. The choices you make with your financial capital should reflect the nature and security of your career or job (your human capital, which is your ability to earn a living).

Milvesky suggests that the strategies that serve us well during the wealth accumulation phase may need to be altered during the retirement phase, and these may be driven by whether you are a “stock” or a “bond.” Which one are you?