Sustainable Wealth : Achieve Financial Security in a Volatile World of Debt and Consumption

by Merk, Axel; Poole, William

• ISBN13: 9780470496589
• ISBN10: 0470496584
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-10-26
• Publisher: Wiley

Summary

A personal finance guide for today's turbulent worldSustainable Wealth empowers you to achieve your financial goals by unleashing the shackles of debt, no matter how uncertain the future may be. Filled with in-depth insights and practical advice, this reliable resource illustrates how you can predict economic booms and busts before they happen, adapt to changing markets and plan for lasting financial stability.Over the course of his career, Axel Merk has been at the forefront of identifying major trends, a leader in the public policy debate on how to fix the economy, and guide for investors looking to navigate the global credit crisis. With this new book, Merk puts your financial decisions in a global context and shows how factors ranging from the Federal Reserve and Congress to trends in Asia and Europe influence your financial well-being. Coaches you how to recognize major economic trends before they happen Puts forth a plan to help you cope with expenses and save for retirement, while building a legacy of wealth, not a mountain of debt Reveals why "staying the course" when governments or markets change the rules may be hazardous to your wealthAs investors struggle to adapt to the new financial landscape, Sustainable Wealth provides straightforward answers to the tough financial questions we face-and the tools to achieve a financially sustainable lifestyle.

Author Biography

Axel Merk is the President and Chief Investment Officer of Merk Investments LLC, an SEC registered investment advisory firm that manages mutual funds specializing in currencies. He has published articles describing complex economic phenomena in understandable terms and is a frequent expert presenter and moderator at conferences. Merk is a sought-after voice in financial news, known for his understandable advice and uncanny ability to predict market movements. He is a regular guest on CNBC and Fox News, and is frequently quoted in Barron's, the Wall Street Journal, Bloomberg News, USA Today, and the Financial Times.

Table of Contents

Foreword	p. xi
Preface	p. xiii
Introduction	p. 1
Achieving Excellence as a Financial Pilot	p. 2
What Is Sustainable Wealth?	p. 4
A Volatile World of Debt, Consumption, and Temptation	p. 6
Unintended Consequences	p. 8
The Flight You're About to Embark On...	p. 9
A world of Temptation	p. 13
The Temptation of Credit	p. 15
The Relationship Between Credit and Debt	p. 17
Credit as Money	p. 20
The Power (and Un-Power) of Central Banks	p. 23
Sizing the Debt Problem	p. 25
A Crisis in Confidence	p. 27
Credit Crisis Consequences	p. 28
A Bond Market Bubble?	p. 31
Credit as a Threat to Sustainable Wealth	p. 32
Credit as Fuel for Other Temptations	p. 33
Using Credit Wisely	p. 34
The Temptation of Consumption	p. 37
The Consumption Paradigm	p. 39
The Cost of a Consumption Economy	p. 45
Long-Term Consequences	p. 53
Unwinding the Consumption Bubble	p. 54
What This All Means for You	p. 56
The Temptation of Policy Change	p. 59
The Boom/Bust Cycle: Can You Fool Mother Nature?	p. 60
Goldilocks Intended	p. 65
Above and Beyond: The Fed Ventures Into Fiscal Policy	p. 69
More Bad Medicine for Boom/Bust Cycles	p. 73
Regulation and Taxes: Consistency is the Best Policy	p. 76
Long-Term Policy Consequences	p. 79
Policy, Complacency, and Sustainable Wealth	p. 82
The Temptation of Complacency	p. 83
Big Hat, No Cattle	p. 84
Complacency's Counterparty-Risk	p. 88
The Complacency of Business Legacy	p. 93
Trust Must Be Earned Every Day	p. 95
Live Free or Die	p. 98
Achieving Sustainable Wealth	p. 101
Challenging Conventional Wisdom	p. 103
Recognize Your Responsibility	p. 104
Should You Use an Adviser?	p. 107
The Proactivity of Sustainable Wealth	p. 110
Low-Probability, High-Risk Events	p. 117
Adaptive Investing, Rather Than Staying the Course	p. 118
The Sustainable Wealth Lifestyle	p. 123
Saving and Spending in a Volatile World	p. 125
The Sustainable Wealth Grid	p. 126
Become a Scenario Planner	p. 129
Sustainable Wealth: A Store of Value	p. 130
The Individual Wealth Cycle Model	p. 134
The Importance of Pay As You Go	p. 140
Getting a Handle on Expenses	p. 144
How to Spend Less Than You Earn	p. 146
Make the Important Standard-of-Living Decisions	p. 147
Sustainable Wealth in a Volatile World	p. 152
Crisis Investing	p. 153
Signs of Crisis	p. 154
Hope Is Not a Strategy	p. 161
About Insurance	p. 166
There's No Such Thing as a Safe Asset	p. 169
Finding a Place to Hide: Depression Investing	p. 175
How to Invest in a Bust	p. 178
Toward Sustainable Wealth	p. 181
Profiting in a Volatile World	p. 183
Diversification	p. 185
Scenario-Based Investing	p. 188
Investing in the Future	p. 188
Stock Investing: Investing for Value	p. 189
Diversification with Real Estate and Land	p. 195
Diversification into Alternative Investments	p. 196
Profit Opportunities in an Uncertain World	p. 198
When to Sell	p. 205
How to Invest in a Boom	p. 206
Toward a Sustainable Wealth Investing Model	p. 208
Sustainable Investing	p. 209
The Power of Compounding	p. 210
Doing Investing Right	p. 214
A Golden College Savings Plan	p. 217
Taking Risks Without Jeopardizing Sustainable Wealth	p. 221
Purpose-Driven Investing	p. 225
Sustainable Investing and the Sustainable Wealth Lifestyle	p. 228
The Pursuit of Sustainable Wealth and Happiness	p. 231
The Rewards of Living Within Your Means	p. 233
Sustainable Work-Life Balance	p. 235
Leaving a Legacy: Sustainable Giving	p. 238
Sustaining Wealth Spans Generations	p. 240
Surgeon General's Warning: Sustainable Wealth May Be Addictive	p. 241
Final Thoughts	p. 242
Resources	p. 243
About the Author	p. 247
Index	p. 249
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