This is the last part of a review of the book “Worry-Free Investing”, by Zvi Bodie and Michael J. Clowes. This review began here.
On the positive side, this book contains a wealth of useful and unbiased information about investing and saving for such things as college and retirement. The authors are thorough and knowledgeable. Not counting differences of opinion, I found only one error in the book: at the top of page 113, the return in the example is actually 43.4% rather than 24.9%.
On the negative side, the book heavily stresses investing in I Bonds, which are safe, but give low investment returns. I fear that most people will not be able to save enough money each year to meet their goals if they stick to I Bonds. These people need to take some calculated risks to get what they want. It’s better to have a 90% chance of achieving your goals with stocks than having a 0% chance with I Bonds.
Even though I disagree with the authors’ main point that stocks are too risky, it’s a good idea to seek different points of view that challenge your assumptions. The authors do make good points about people exposing their finances to too much risk. For these reasons, I recommend this book.