YES, YOU CAN GET
A FINANCIAL LIFE!
ALSO BY BEN STEIN
HOW SUCCESSFUL PEOPLE WIN: Using Bunkhouse Logic
to Get What You Want in Life
HOW TO RUIN YOUR FINANCIAL LIFE
HOW TO RUIN YOUR LIFE (hardcover)
(also available as an audio book)
HOW TO RUIN YOUR LOVE LIFE
HOW TO RUIN YOUR LIFE (tradepaper)
(comprises the three titles above)
26 STEPS TO SUCCEED IN HOLLYWOOD...
or Any Other Business (co-written with Al Burton)
WHAT YOUR KIDS NEED TO KNOW ABOUT
MONEY AND SUCCESS (available March 2007)
ALSO BY BEN STEIN AND PHIL D E MUTH
CAN AMERICA SURVIVE?: The Rage of the Left, the Truth, and
What to Do about It
YES, YOU CAN BE A SUCCESSFUL INCOME INVESTOR!:
Reaching for Yield in Todays Market
YES, YOU CAN STILL RETIRE COMFORTABLY!:
The Baby-Boom Retirement Crisis and How to Beat It
All of the above are available at your local bookstore, or may be ordered by visiting the distributors for New Beginnings Press:
Hay House USA: www.hayhouse.com
Hay House Australia: www.hayhouse.com.au
Hay House UK: www.hayhouse.co.uk
Hay House South Africa: orders@psdprom.co.za
Hay House India: www.hayhouseindia.co.in
YES, YOU CAN GET A
FINANCIAL LIFE!
YOUR LIFETIME GUIDE
TO FINANCIAL PLANNING
BEN STEIN AND PHIL DEMUTH
NEW BEGINNINGS PRESS
Carlsbad, California
Copyright 2007 by Ben Stein and Phil DeMuth
Published by: New Beginnings Press, Carlsbad, California
Distributed in the United States by: Hay House, Inc.: www.hayhouse.com Distributed in Australia by: Hay House Australia Pty. Ltd.: www.hayhouse.com.au Distributed in the United Kingdom by: Hay House UK, Ltd.: www.hayhouse.co.uk Distributed in the Republic of South Africa by: Hay House SA (Pty), Ltd.: orders@psdprom.co.za Distributed in Canada by: Raincoast: www.raincoast.com Distributed in India by: Hay House Publications (India) Pvt. Ltd.: www.hayhouseindia.co.in
Editorial supervision: Jill Kramer Design: Tricia Breidenthal
All rights reserved. No part of this book may be reproduced by any mechanical, photographic, or electronic process, or in the form of a phonographic recording; nor may it be stored in a retrieval system, transmitted, or otherwise be copied for public or private useother than for fair use as brief quotations embodied in articles and reviewswithout prior written permission of the publisher.
The authors of this book do not dispense medical advice or prescribe the use of any technique as a form of treatment for physical, emotional, or medical problems without the advice of a physician, either directly or indirectly. The intent of the authors is only to offer information of a general nature to help you in your quest for emotional and spiritual well-being. In the event you use any of the information in this book for yourself, which is your constitutional right, the authors and the publisher assume no responsibility for your actions.
Library of Congress Cataloging-in-Publication Data
Stein, Benjamin.
Yes, you can get a financial life! : your lifetime guide to financial planning / Ben Stein and Phil DeMuth.
p. cm.
ISBN-13: 978-1-4019-1124-9 (hardcover : alk. paper)
ISBN-13: 978-1-4019-1125-6 (tradepaper : alk. paper) 1. Finance, Personal--United States.
2. Investments--United States. 3. Financial security--United States. I. DeMuth, Phil, 1950- II.
Title.
HG179S55858 2007
332.02400973--dc22 2006020272
Hardcover ISBN: 978-1-4019-1124-9
Tradepaper ISBN: 978-1-4019-1125-6
10 09 08 07 4 3 2 1
1st edition, February 2007
Printed in the United States of America
FOR RACHEL, STEPHANIE,
AND CHRISTOPHER
CONTENTS
CHAPTER 1
P ERSONAL F INANCE
O VER THE L IFE C YCLE
L ife is short. Life is precious.
Its far too short and precious to lie awake worrying about money at three oclock in the morning. Your authors have done so, and take it from usit isnt worth it. Even the most blameless lives can be ruined by wondering where the money will come from to pay for a set of braces. The most charming guy or gal with good manners and nice teeth can be cast down into a pit of anxiety and self-loathing by wondering how to finance a childs first year at Amherst College ($50,000 and rising as of 2006).
Men and women who are kind to their children, loving to their dogs and cats, and unselfish with their time when friends are getting divorced still find that their peace of mindone of the few really meaningful assets in this worldcan be snatched away when a credit card is rejected. When perfectly fine people look back upon the last ten years of their lives, that decade can seem as if it were a blur of falling leaves, gray afternoons before a fireplace, and crowded trains and freeways, but thenlike a horrible scar cutting across it allthere were the nights spent worrying about where the funds to pay for it all would come from.
That need not happen, of course, and thats what this book is about. Life should be for love and work, not worrying about money. Everyone will experience totally unexpected financial crises that no amount of preparation could have prevented, and there will probably be some windfalls, too. The nature of life is to be unpredictable in all its small details (and even in its large ones). We cant control every event.
Those nights of lying in bed and hearing the neighbors dog bark while you wonder how youll tell your wife that her mother will have to move out of the good private nursing home into some miserable public oneand indeed, most other bouts of terror about financial crisesare all too often the result of poor or nonexistent planning, however. They shouldnt happen, and they dont have to.
The financial ups and downs of most Americans lives are highly predictable, and in most cases, the causes of fiscal calamity arent hard to discern. With some degree of understanding about what the future holds, both in kind (college educations, down payments on houses, and retirement) and in amount (total cost and necessary savings today), the ordinary American family and individual can face the future with confidence. With some understanding of the nature of these crossroads and how they can be anticipated, life will hold fewer terrors and far more peace of mindat least in the financial area of the brain.
For example, most folks know that if their children want to go to college, it will be expensive and that some provision should be made in terms of saving or borrowing. But almost no one has a clear idea of just how much an education will cost at different kinds of institutions at various times in the future, despite a mountain of data on that subject for the past, present, and future. Few individuals have any idea what amount of money, put away at what rate of interest, will be necessary to pay all the expenses of attending State or Stanford. Despite the raft of material on this subject, the people who need the information and the information itself hardly ever meet.
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