Investment adviser Terry Savage says the most important financial book this year is Laurence Kotlikoff’s “Money Magic: An Economist’s Secrets to More Money, Less Risk and a Better Life.”
The chapter titled “Get House Rich” explains the long-term impact of deciding where you will live — and how the money you don’t spend on housing can be leveraged for your future financial security. Creative ideas to make sure you understand the true cost of your housing decisions may change your perspective — from moving back home with Mom and helping her save money on repairs (while you save on rent) to choosing a housing location far from the trendy but expensive cities. Spending less on housing now, can raise your standard of living significantly over your lifetime.
“From mortgages to student loans, from calculating the true cost of divorce to understanding the real risk of stocks, “Money Magic” has the answers, according to Savage. “And the most amazing thing is that it’s not magic at all. It’s just the cleverly explained reality of the economics behind your most important money decisions.”