# MoneyGal's New Book



## Square Root (Jan 30, 2010)

I just read MonerGal's new book " Pensionize Your Nestegg" It was well written, easy to read ,and raised (and solved) some very interesting issues. I highly recommend it to readers of this forum.


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## andrewf (Mar 1, 2010)

Is it actually available then? Alright. I'll order it tonight.


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## Four Pillars (Apr 5, 2009)

I'm still waiting for my review copy - looking forward to it though.


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## Cal (Jun 17, 2009)

Is it going to be in Chapters?


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## MoneyGal (Apr 24, 2009)

It should be! I have visited two bookstores in the last two days and have not seen it, though (I will be excited to see my first copy "in the wild"). The actual, "official" release date is today...but I don't know very much about the book business, including what that date actually means. 

I hope to get into a substantive discussion of the issues in the book, if there's interest and questions.


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## Maltese (Apr 22, 2009)

I've looked for it in a few bookstores here and haven't been able to find it. I'll try again in a few days. I'm looking forward to any discussions that arise from the book's content.


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## Mockingbird (Apr 29, 2009)

Available in amazon as well with some discount.


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## andrewf (Mar 1, 2010)

I, too, recommend Amazon. Why spend more at a crappy bricks and mortar store? I think MG's royalty cheque is the same either way.


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## MoneyGal (Apr 24, 2009)

It isn't, but believe me, I am not staking my fortune on book royalties.


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## Square Root (Jan 30, 2010)

I preordered through Amazon and received my copy this past Monday. I suspect one of the main issues this group will find interesting is the proposition that buying an annuity is a very smart thing to do. this is despite the poor pricing currently. The book raises prominently the issue of longevity risk that most people tend to over compensate for , hence underspending in early years of retirement. Great book-interesting ideas. Buy it!!


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## MoneyGal (Apr 24, 2009)

Square Root said:


> The book raises prominently the issue of longevity risk that *most people tend to over compensate for* , hence *underspending* in early years of retirement.


This is one of the core ideas of the book, and it is strongly counterintuitive. Most mainstream financial advice does not follow the path we lay out in the book, and getting to get that message out there in print was very satisfying for me personally.


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## Cal (Jun 17, 2009)

Are you going to do any meet and greet, or readings in bookstores to promote it?


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## MoneyGal (Apr 24, 2009)

If you are in Toronto, I am at the "Money Matters" tent at Word on the Street on Sunday, September 26. (Will provide links later...)


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## Cal (Jun 17, 2009)

I think I am around that weekend....I will keep an eye out for the link.


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## Underworld (Aug 26, 2009)

I'll pick up a copy - good luck with the launch MoneyGal!


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## CanadianCapitalist (Mar 31, 2009)

More than 1/2 way through the book. Well written & easy-to-follow. Rigorous discussions as you would expect someone from academia to be. I would recommend that anyone in or nearing retirement should read this book.

One quibble: While I can see the benefits that GLWB products can provide, it's hard to see how investors in the popular ones (such as IncomePlus) that charge as much as 4% in fees are ever going to come up ahead. Perhaps a better idea might be to purchase an annuity and invest the difference in a portfolio?


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## MoneyGal (Apr 24, 2009)

Oh Em Gee, finally a substantive question on the book. 

Here's the thing. You will note that we do NOT provide any recommendations in the book. We don't say that GWMBs are better than annuities or your SWP (non-longevity-guarateed) accounts, and we don't provide any model or recommended allocations. 

We do, however, describe the three product "silos" and the costs, attributes, and benefits of each one. 

The thing about GMWBs which some investors will prefer (compared to annuities) is that they preserve liquidity. Annuities are an irreversible handover of your $ to the insurance company. Many people are not comfortable with a one-way decision like that. 

GMWBs, on the other hand, do not require that final decision...you CAN cash in and liquidate your accounts (to preserve estate value, or for whatever reason you want). 

We do provide a note and chart (on page 130) about the costs to pensionize. We are not intending to step over costs and fees, not by any means. But it is important to understand what you are getting from those fees, and the nature of the trade-offs you make in choosing one silo over another. (Google the "annuity puzzle" for discussion about the puzzingly low rates of annuitization in North America.)


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## MoneyGal (Apr 24, 2009)

Oh! And I did not mean that there hasn't been substantive questions here about the book. Yesterday at Word on the Street someone insisted that I don't understand how annuities work and although she doesn't own an annuity or work in the industry, she must understand them better than me (and she cornered me to harangue me on this point). And another guy wanted to discuss longevity on the planet Vulcan.  (To be fair, it was in response to me talking about separating out longevity and market risk, using the planet Vulcan as an example. But whaddaya know, I have not actually watched the entire Star Trek _ouevre_.)


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## andrewf (Mar 1, 2010)

Sorry MG. The book has just reached the top of my pile. I'll probably finish it tonight and I might have more thoughts.


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## Financial Cents (Jul 22, 2010)

*Congrats on the book*

Congrats MG. I'll need to get a copy!

BTW - your book is now listed on Chapters.ca.


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## Cal (Jun 17, 2009)

review by CC:

http://www.canadiancapitalist.com/book-review-pensionize-your-nest-egg/


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## MoneyGal (Apr 24, 2009)

Sometimes I really feel that the heavy lifting in writing that book was worth it. Someone here posted a very complimentary review of the book on Amazon. 

Thanks, guys; for being so gracious. That book kind of took over my life for a few months and it is really great to have it getting the kind of reception CC's review and that Amazon review demonstrate.


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## andrewf (Mar 1, 2010)

I think the book is a great service to Canadians thinking about income security in retirement--I know you probably won't be getting rich from this exercise.

I think it was well-written for your intended audience, but I was missing some of the more analytical/quantitative side of things. I also missed a discussion of tax implications of using registered versus taxable funds to purchase an annuity. Perhaps this is information that individuals should be getting from a CFP, but I don't think it would be beyond the scope of the book at talk about it.

On the whole though, I think it is very good advice. Particularly the point about revisiting the analysis periodically in light of changes in your portfolio and circumstances.


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## Four Pillars (Apr 5, 2009)

*My PYNE review*

Here is my review of MoneyGal's (and some other guy) fine book:

http://www.moneysmartsblog.com/pensionize-your-nest-egg-book-review-milevsky-and-macqueen/


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## heyjude (May 16, 2009)

I just finished the book. I think it's a must read for people approaching retirement, because it introduces an idea that no self directed planner will. It's definitely going to change my approach to funding the decumulation phase. I realize that the book is written to be engaging and user friendly. Personally, I would have liked to see the formulas behind the charts, so I could do my own calculations. I will just have to play with the calculators on the QUEMA website. It doesn't answer all my questions about implementation, but I will certainly know what questions to ask. Thanks MoneyGal and Moshe!


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## MoneyGal (Apr 24, 2009)

HeyJude: Moshe's textbook The Calculus of Retirement Income provides the basic math for all the calculations. I can also direct you to various academic papers if you are interested. This paper provides the formulas explicitly, including in Excel versions.


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## Sampson (Apr 3, 2009)

MG,

your link sends us to Lee Valley. Perhaps you were multi-tasking and doing some shopping while writing your post?


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## MoneyGal (Apr 24, 2009)

Very great. I'm surprised I don't get caught like that more often. Let's see, I currently have 12 tabs open. 

By the way, that volcanic deodorizer is super-awesome. Just like calculus (ahem) and Lee Valley in general.


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## Jungle (Feb 17, 2010)

I'm holding at number 40 out of 83 at TPL. Can't wait to read it.


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## HaroldCrump (Jun 10, 2009)

Jungle said:


> I'm holding at number 40 out of 83 at TPL. Can't wait to read it.


If the default duration for book issue is 4 weeks in Toronto (usually is), you will be waiting for a loooong time


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## Four Pillars (Apr 5, 2009)

HaroldCrump said:


> If the default duration for book issue is 4 weeks in Toronto (usually is), you will be waiting for a loooong time


It really depends on how many copies they have. It might not take that long.


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## Jungle (Feb 17, 2010)

They have 34 copies. Moneygal=royalties=real money gal now


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## MoneyGal (Apr 24, 2009)

Yes. Depending on the price they paid, that could amount to as much as $22.85 for me. 

Coming back to provide more equations for HeyJude, if he or she wants them. 

This paper gives you the probability of ruin calculation (AND a lookup table) - 

http://www.ifid.ca/pdf_newsletters/PFA_2007APR_RUIN.pdf

So, if you want to calculate your retirement sustainability quotient, you can calculate the probability of ruin of your portfolio and prepare a weighted average of your portfolio's probability of ruin and your longevity-insured income, as described at the bottom of page 111.


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## jamiechese (Jul 13, 2010)

Your book looks quite interesting MoneyGal, although I am curious as to whether it may eventually be available in a downloadable PDF format (or that Adobe book format). If I cant eventually get it in PDF format I will definitely be heading to get one in a bookstore soon!


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## NorthernRaven (Aug 4, 2010)

HaroldCrump said:


> If the default duration for book issue is 4 weeks in Toronto (usually is), you will be waiting for a loooong time


Quickly move to Halifax! It sounded interesting and I put in a request to the Halifax library system awhile back (I was #1 on the waitlist). They now have two copies and only 5 requests right now. 



MoneyGal said:


> Yes. Depending on the price they paid, that could amount to as much as $22.85 for me.


Don't forget the untold riches from the Public Lending Right fees...


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## fraser (May 15, 2010)

I ordered this book last week. It arrived at noon and I cannot put it down. In addition to being very relevent to my own situation, I find that it is extremely well written and easy to understand. This is a good one and I would recommend it to everyone. I am going to finish it tomorrow but I suspect that a re-read will be in order after a week or so to ensure that I did not miss anything. Qudos to the co-authors.


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## MoneyGal (Apr 24, 2009)

Aw, shucks. That was really nice to read! Thank you.


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## Square Root (Jan 30, 2010)

fraser said:


> I ordered this book last week. It arrived at noon and I cannot put it down. In addition to being very relevent to my own situation, I find that it is extremely well written and easy to understand. This is a good one and I would recommend it to everyone. I am going to finish it tomorrow but I suspect that a re-read will be in order after a week or so to ensure that I did not miss anything. Qudos to the co-authors.


Agree. I read it in August so I think it's time for a reread.


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## Brian Weatherdon CFP (Jan 18, 2011)

*Kudo's*

Awesome....I believe Moshe mentioned this book to me last summer but I hadn't seen it yet. Reading the thread, I was immediately compelled to google, "Pensionize your Nestegg". Awesome, yes this is an item for everyone, advisors and public equally, to read and fully digest. Thanks Alexandra ...aka MoneyGal  Well done*!*

Brian


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## marina628 (Dec 14, 2010)

I finally got my copy ,took me nearly two weeks to get my hand on it!Looks like I will be busy on the weekend!


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## Jungle (Feb 17, 2010)

I did read it also, book is really good. One of those books you want to own and maybe read a couple times. Very comprehensive for DIY retirement planning.


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## Brian Weatherdon CFP (Jan 18, 2011)

It's the common sense professional planners need too. Should be required reading in CFP programs and for continuing ed. Cheers again!
B


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## MoneyGal (Apr 24, 2009)

I wish it was common sense. I actually think the book is full of uncommon sense.


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## Brian Weatherdon CFP (Jan 18, 2011)

Right on, and that's uncommonly Wonderful !!!
B


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## Four Pillars (Apr 5, 2009)

MoneyGal said:


> I wish it was common sense. I actually think the book is full of uncommon sense.


I agree. It certainly seems to be selling quite well, which is good to see.


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## olivaw (Nov 21, 2010)

For me, "Pensionize Your Nest Egg" was an excellent read because it is very relevant to my circumstances. It challenged some of my beliefs about retirement planning with well presented and convincing arguments. Perhaps there is something better for me than a pure 50-50 asset allocation and 4% withdrawals. I'm left with many questions and doubts but the book got me thinking about hybrid approaches that may lead to a more secure (and far less stressful) retirement. 

I hope to retire at age 56 but I have no pension. I'll use savings for four years. At 60 I'll collect CPP. At 65 I'll receive OAS. At 56 my RSQ is a worrisome 80%. At 65 my RSQ will be 96% - *IF* I can achieve a 5% ROI. It's a very important *IF* and the book suggests ways to manage that risk. 

GLWBs seem to be worth considering. How do I go about further investigating them? There is a wealth of unbiased information about stocks, ETFs and GICs. Is there any third party information about GLWBs out there? Do I have to pay a financial adviser or rely on a commissioned sales agent to learn more? 

Can I really trust what the Insurance/Assurance company tells me? My experience with Canadian insurance and assurance has been disappointing. Will they remain solvent? What's in the fine print? Is my mistrust even justified?

So I loved the book and I will read it again. It raised many important questions, it gave me access to calculation tools and it gave me hope.


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## marina628 (Dec 14, 2010)

I am reading it now ....


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## lost_investor (Feb 13, 2011)

I own the book. It's a nice read and helps me understand the things I need to consider in the next few decades. It also makes me think it's actually possible to retire without a gold-plated pension plan.

I too would like more information on GLWBs as there doesn't seem to be much about them on the net.


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## Larry6417 (Jan 27, 2010)

I saw MoneyGal on _Money Talk_ with Patty Lovett-Reid. MG did a great job explaining the concepts in her book. Congrats to MG!


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## MoneyGal (Apr 24, 2009)

Many thanks, Larry. 

For those looking for more information on GMWBs (or whatever clunky acronym you'd like to use), try the personal website of my co-author, Dr. Moshe Milevsky, at www.moshemilevsky.com. 

Or feel free to ask me any questions directly, although I am not spending much time here lately. There's not a lot of information out there about GMWBs and much of it is very biased in one direction or another.


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## marina628 (Dec 14, 2010)

I read the book twice as first time few things went over my head ,it actually made me see my goals are realistic.I bought it as I am 44 and think I will have to refer back to it in the future .


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## Cal (Jun 17, 2009)

Hey, she looks familiar......

http://www.theglobeandmail.com/glob...-regards-herself-as-bond-like/article1957343/


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## GeniusBoy27 (Jun 11, 2010)

I saw that too this morning in the G&M. Congrats!


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## MoneyGal (Apr 24, 2009)

Thanks guys. They were rigourous about fact-checking the article but I'm not a CFA (I didn't say that...they put that error in there by themselves!)


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## Toronto.gal (Jan 8, 2010)

I read it too!

Thanks Moneygal; after reading about what you consider your 'worst move,' I don't feel so bad.


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## Financial Cents (Jul 22, 2010)

@MoneyGal:

Can I ask what proportion of bonds you hold?

Do you hold any?

Curious

My Own Advisor - A blog about personal finance, investing and my journey to financial independence


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## MoneyGal (Apr 24, 2009)

No bonds, because I still have a mortgage (and because my human capital is pretty bond-like already). I've gone on the record many times about that.


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## Financial Cents (Jul 22, 2010)

Thanks for the response MG, I see your point.


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## Karen (Jul 24, 2010)

I just finished reading your book, too, MoneyGal, and I found it very interesting and full of practical information. Thanks.


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## NorthernRaven (Aug 4, 2010)

NorthernRaven said:


> Quickly move to Halifax! It sounded interesting and I put in a request to the Halifax library system awhile back (I was #1 on the waitlist). They now have two copies and only 5 requests right now.
> 
> Don't forget the untold riches from the Public Lending Right fees...


The Halifax library has increased from 2 to 6 copies now - more than (random choice) the new Anne McCaffrey Pern Dragon book. Must be popular...


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## fraser (May 15, 2010)

The book is very good. It is the kind of book that you buy, read once or twice, and then read all or parts of it again each year as you review you financial position/investments etc.


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