Book Review on "Personal Finance"

Book Name        : Personal Finance

Author                : Jack R kappor, Les R Dlabay, Robert J Hughes

Edition                : Eighth

Publication          : Tata McGraw Hill Education Private Limited

ISBN-13              : 978-0-07-0066767-9

ISBN-10              : 0-07-066767-5

Pages                 : 643

This book is based on US market and investment avenues available over there. All descriptions and details are based on US financial market and their taxation and other respective laws.

This book is mainly divided into six parts.

First parts talks about fundamentals of financial management, focusing primarily on time value of money. Time value of money could be important consideration, especially for those countries where comparatively inflation rate is high. As in India inflation rate on an average 8% which relatively higher than US i.e. 1.3% -1.5%, time value concept is significant for Indian investors. In this part there is also discussion about career planning and about determining long term strategy for career. Even, how to prepare resume and supporting letter are also discussed.

Second part of the book discuss about consumer credit. Over here consumer credit term is used for the credit of the person for borrowing i.e. potency of person to get loan. Over here there is also discussion about cost of credit, which could become important consideration while availing loans or credits.

Third part talks about purchasing the assets like vehicles and houses. Legal aspects and other important factors required to consider during purchasing these assets are also discussed with purchasing process as well.

Forth part focuses on covering risk related to above said assets as well human life. So it talks about importance of general insurance as well about life insurance to hedge against risk. There are various types of insurance plans, which we can use to cover it. Such different types of insurance plans are also discussed over here, but with more reference to US market. Though basically there are few common types of insurance plan, which we can consider or expect from insurance companies in India too.

In fifth part of this book there is discussion about long term securities as investment avenues like bonds (in Indian market it is debenture), shares of the companies - preference as well common stock (equity), government securities and even mutual funds i.e. the portfolio which may consist above all. In this part Real estate is also considered as one of the good alternative to invest in long-run. This part also says about various factors affecting these long term investment avenues as well as various types of risks involved.

In the last part of the book importance of retirement planning is discussed, as it is essential to plan special need of post retirement life and income during this phase of life. At the end there is also discussion about “Estate planning”, which could be comparatively new concept for Indian investor. Estate planning is administration and disposition of one’s property during one’s life and at one’s death. We can put this concept in similarity of concept about preparation of will before one’s death about after his death. As this part is last part of the book, it also gives due emphasis on last phase of life.

Thus, this book could be really useful to in individual to be conscious about planning for “Personal Finance”, but of course with proper understanding it with reference to context of Indian financial market. This book could be really helpful to people who would like to situated at US for for than at least five year. As this book is fully prepared with reference to state of affairs of US, it could be good source of inspiration for any of the author, who would like to write such a book in Indian context