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 4LTR PRESS
BILLINGSLEY + GITMAN + JOEHNK

PFIN PERSONAL FINANCE

7

PFIN
7
BILLINGSLEY + GITMAN + JOEHNK

STUDENT EDITION
NOW WITH MINDTAP

9780357033609_cvr_hr_se.indd 1 10/12/18 5:25 PM

SE/Billingsley + Gitman + Joehnk, Title, 7th Edition   ISBN 978-0-357-03360-9 ©2020 Designer: Chris Doughman
Text & Cover printer: Quad Graphics   Binding: PB   Trim: 8.5" x 10.875"   CMYK
 5 Making Automobile and
Housing Decisions 110
Part 4
5-1 Buying an Automobile 111
Managing
5-2 Leasing a Car 116 insurance needs
5-3 Meeting Housing Needs: Buy or Rent? 118
5-4 How Much Housing Can You Afford? 124
5-5 The Home-Buying Process 132
5-6 Financing the Transaction 135

Rawpixel.com/Shutterstock.com
Part 3
Managing credit
8 Insuring Your Life 198
8-1 Basic Insurance Concepts 199
8-2 Why Buy Life Insurance? 200
8-3 How Much Life Insurance is Right for You? 201
Mark Viker/Getty Images

8-4 What Kind of Policy is Right for You? 206

8-5 Buying Life Insurance 215
8-6 Key Features of Life Insurance Policies 218

9 Insuring Your Health 228

6 Using Credit 144 9-1 The Importance of Health Insurance
Coverage 229
6-1 The Basic Concepts of Credit 145
9-2 Health Insurance Plans 230
6-2 Credit Cards and Other Types of Open
9-3 Health Insurance Decisions 236
Account Credit 148
9-4 MedIcal Expense Coverage and Policy
6-3 Obtaining and Managing Open Forms of Credit 157
Provisions 240
6-4 Using Credit Wisely 164
9-5 Long-Term-Care Insurance 245

7 Using Consumer Loans 172

9-6 Disability Income Insurance 248

7-1 Basic Features of Consumer Loans

7-2 Managing Your Credit 179
173 10 Protecting Your Property 256
10-1 Basic Principles of Property Insurance 257
7-3 Single-Payment Loans 182
10-2 Homeowner’s Insurance 261
7-4 Installment Loans 187
Contents v

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 10-3 Automobile Insurance 268
10-4 Other Property and Liability Insurance 274 Part 6
10-5 Buying Insurance and Settling Claims 275
retireMent and
Part 5
estate Planning
Managing
investMents

Cathy Yeulet/123RF
Jan Stromme/the Image Bank/Getty Images

14 Planning for Retirement 376

14-1 An Overview of Retirement Planning 377
14-2 Social Security 383

11 Investment Planning 282

14-3 Pension Plans and Retirement Programs 386
14-4 Annuities 395
11-1 The Objectives and Rewards of Investing 283
11-2 Securities Markets 289
11-3 Making Transactions in the Securities Markets 295
15 Preserving Your Estate 404
15-1 Principles of Estate Planning 405
11-4 Becoming an Informed Investor 299
15-2 Thy Will Be Done… 409
11-5 Online Investing 303
15-3 Trusts 417
11-6 Managing Your Investment Holdings 305
15-4 Federal Unified Transfer Taxes 420

12 Investing
Bonds 314
in Stocks and
15-5 Calculating Estate Taxes 424
15-6 Estate Planning Techniques 424

12-1 The Risks and Rewards of Investing 315 Appendix A 430

12-2 Investing in Common Stock 321 Appendix B 431
12-3 Investing in Bonds 331 Appendix C 432
Appendix D

13 Investing
433
Appendix E 434
in Mutual Funds,
ETFs, and Real Estate 346 Index 436

13-1 Mutual Funds and Exchange Traded Funds:

Some Basics 347
13-2 Types of Funds and Fund Services 355
13-3 Making Mutual Fund and ETF Investments 362
13-4 Investing in Real Estate 368

vi Contents

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 ABout the AuthoRS
Randall S. BillingSley is a finance professor
at Virginia Tech. He received his bachelor’s degree in
economics from Texas Tech University and received
both an M.S. in economics and a Ph.D. in finance from
Texas A&M University. Professor Billingsley holds the
Chartered Financial Analyst (CFA), Financial Risk
Manager (FRM), and Certified Rate of Return Analyst
(CRRA) professional designations. An award-winning
teacher at the undergraduate and graduate levels, his
research, consulting, and teaching focus on investment
analysis and issues relevant to practicing financial ad-
visors. Formerly a vice-president at the Association
for Investment Management and Research (now the
CFA Institute), Professor Billingsley’s published equity
valuation case study of Merck & Company was assigned
reading in the CFA curriculum for several years. In 2006,
the Wharton School published his book, Understanding
Arbitrage: An Intuitive Approach to Financial Analysis.
In addition, his research has been published in refereed
journals that include the Journal of Portfolio Manage-
ment, the Journal of Banking and Finance, Financial
Management, the Journal of Financial Research, and
the Journal of Futures Markets. Professor Billingsley
advises the Student-Managed Endowment for Educa-
tional Development (SEED) at Virginia Tech, which
manages an equity portfolio of about $5 million on be-
half of the Virginia Tech Foundation.
Professor Billingsley’s consulting to date has focused
on two areas of expertise. First, he has acted extensively
as an expert witness on financial issues. Second, he has
taught seminars and published materials that prepare in-
vestment professionals for the CFA examinations. This
has afforded him the opportunity to explore the relation-
ships among diverse areas of investment analysis. His
consulting endeavors have taken him across the United
States and to Canada, Europe, and Asia. A primary goal of
Professor Billingsley’s consulting is to apply the findings of
academic financial research to practical investment deci-
sion making and personal financial planning.
lawRence J. gitman is an emeritus professor of
finance at San Diego State University. He received his
bachelor’s degree from Purdue University, his M.B.A.
from the University of Dayton, and his Ph.D. from the
University of Cincinnati. Professor Gitman is a prolific
textbook author and has more than 50 articles appearing
33609_fm_ptg01.indd 7
in Financial Management, The Financial Review, the
Journal of Financial Planning, the Journal of Risk and
Insurance, the Financial Services Review, the Journal of
Financial Research, Financial Practice and Education,
the Journal of Financial Education, and other scholarly
publications.
His major textbooks include Introduction to Busi-
ness, co-authored with Carl McDaniel, et. al.; and
Fundamentals of Investing, Thirteenth Edition, which
is co-authored with Michael D. Joehnk and Scott B.
Smart. Gitman and Joehnk also wrote Investment
Fundamentals: A Guide to Becoming a Knowledgeable
Investor, which was selected as one of 1988’s 10 best
personal finance books by Money magazine; and Prin-
ciples of Managerial Finance, Sixth Brief Edition, co-
authored with Chad J. Zutter.
An active member of numerous professional organi-
zations, Professor Gitman is past president of the Acad-
emy of Financial Services, the San Diego Chapter of the
Financial Executives Institute, the Midwest Finance
Association, and the FMA National Honor Society. In
addition, he is a Certified Financial Planner® (CFP®).
Gitman formerly served as a director on the CFP®
Board of Governors, as vice-president–financial edu-
cation for the Financial Management Association, and
as director of the San Diego MIT Enterprise Forum.
Gitman has two grown children and lives with his wife
in La Jolla, California, where he is an avid bicyclist.
michael d. Joehnk is an emeritus professor of
finance at Arizona State University. In addition to his ac-
ademic appointments at ASU, Professor Joehnk spent a
year (1999) as a visiting professor of finance at the Univer-
sity of Otago in New Zealand. He received his bachelor’s
and Ph.D. degrees from the University of Arizona and
his M.B.A. from Arizona State University. A Chartered
Financial Analyst (CFA), he has served as a member
of the Candidate Curriculum Committee and of the
Council of Examiners of the Institute of Chartered
Financial Analysts. He has also served as a director of the
Phoenix Society of Financial Analysts and as secretary/
treasurer of the Western Finance Association, and he was
elected to two terms as a vice-president of the Financial
Management Association. Professor Joehnk is the author
or co-author of some 50 articles, five books, and numer-
ous monographs. His articles have appeared in Financial
About the Authors vii
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 Management, the Journal of Finance, the Journal of
Bank Research, the Journal of Portfolio Management,
the Journal of Consumer Affairs, the Journal of Financial
and Quantitative Analysis, the AAII Journal, the Journal
of Financial Research, the Bell Journal of Economics,
the Daily Bond Buyer, Financial Planner, and other
publications.
In addition to co-authoring several books with Lawrence
J. Gitman, Professor Joehnk was the author of a highly
successful paperback trade book, Investing for Safety’s
viii About the Authors
33609_fm_ptg01.indd 8
Sake. Dr. Joehnk was also the editor of Institutional
Asset Allocation, which was sponsored by the Institute
of Chartered Financial Analysts and published by Dow
Jones-Irwin. He was a contributor to the Handbook
for Fixed Income Securities and to Investing and Risk
Management, Volume 1 of the Library of Investment
Banking. In addition, he served a six-year term as ex-
ecutive co-editor of the Journal of Financial Research.
He and his wife live in Prescott, Arizona.
20/12/18 8:53 PM
 ACKnoWLeDGeMentS
In addition to the many individuals who made significant
contributions to the book by their expertise, classroom
experience, guidance, general advice, and reassurance,
we also appreciate the students and faculty who used the
book and provided valuable feedback, confirming our
conviction that a truly teachable personal financial plan-
ning text could be developed.
We are indebted to the academicians and practi-
tioners who have created the body of knowledge con-
tained in this text. We particularly wish to thank several
people who gave the most significant help in developing
and revising it. They include Eric Johnsen, ChFC, CLU,
LTCP, of StateFarm for his helpful insights on insurance
products and planning; Sam Hicks, Associate Professor
Emeritus, Virginia Tech, CPA (retired, Tennessee),
for his thorough review of the entire book; Professor
Hongbok Lee, of Western Illinois University, for helpful
observations, and Thomas C. Via Jr., CLU, of Leonard
33609_fm_ptg01.indd 9
L. Brown Agency for his help on life and property insur-
ance issues.
The editorial staff at Cengage Learning has been
most helpful in our endeavors. We particularly wish
to thank Joe Sabatino, the Product Manager; Chris
Valentine, Content Manager; Renee Schnee, Product
Assistant, and Brittany Waitt, Learning Designer.
Finally, our wives – Bonnie, Robin, and Charlene –
have provided needed support during the writing of this
book. We are forever grateful to them.
Randall S. Billingsley, Ph.D, FRM, CFA
Virginia Tech
Lawrence J. Gitman, Ph.D., CFP®
San Diego State University
Michael D. Joehnk, Ph.D., CFA
Arizona State University
Acknowledgements ix
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 Understanding the
1 Financial Planning
Process
JGI/Jamie Grill/Blend Images/Getty Images

LEARNING ObjEctIvEs
After studying this chapter, you will be able to…

1-1 Identify the benefits of using personal financial planning techniques to manage your finances.
After finishing
1-2 Describe the personal financial planning process and define your goals.
this chapter go
1-3 Explain the life cycle of financial plans, their role in achieving your financial goals, how to deal
with special planning concerns, and the use of professional financial planners. to PAGE26 for
1-4 Examine the economic environment’s influence on personal financial planning. stUDY tOOLs
1-5 Evaluate the impact of age, education, and geographic location on personal income.

1-6 Understand the importance of career choices and their relationship to personal financial planning.

2 PART ONE: Foundations of Financial Planning

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 hOw wILL thIs AffEct ME?
The heart of financial planning is making sure your values line up with
how you spend and save. That means knowing where you are financially
and planning on how to get where you want to be in the future no matter
what life throws at you. For example, how should your plan handle the
projection that Social Security costs may exceed revenues by 2034? And
what if the government decides to raise marginal tax rates to help cover the
federal deficit? An informed financial plan should reflect such uncertainties
and more.
This chapter describes the financial planning process and explains its context.
Topics include how financial plans change to accommodate your current stage
in life and the role that financial planners can play in helping you achieve your
objectives. After reading this chapter you will have a good perspective on how to
organize your overall personal financial plan.

1-1 thE REwARDs Of sOUND
fINANcIAL PLANNING
LO1 What does living “the good life” mean to you?
Does it mean having the flexibility to pursue your
dreams and goals in life? Is it owning a home in a cer-
tain part of town, starting a company, being debt free,
driving a particular type of car, taking luxury vacations,
or having a large investment portfolio? Today’s complex,
fast-paced world offers a bewildering array of choices.
Rapidly changing economic, political, technological,
and social environments make it increasingly difficult
to develop solid financial strategies that will improve
your lifestyle consistently. Moreover, the financial crisis
of 2007–2008 dramatizes the need to plan for financial
contingencies. No matter how you define it, the good
life requires sound planning to turn financial goals
into reality.
The best way to achieve financial objectives is
through personal financial planning, which helps de-
fine your financial goals and develop appropriate strat-
egies to reach them. And being financially self-aware
provides more insight into the range of available fi-
nancial choices and their trade-offs. Your comfortable
retirement should not depend solely on employee or
government benefits—such as steady salary increases
or adequate funding from employer-paid pensions or
Social Security. Creating flexible plans and regularly
revising them is the key to building a sound financial
future.
Successful financial planning also brings rewards
that include greater flexibility, an improved standard of
living, wiser spending habits, and increased wealth. Of
course, planning alone does not guarantee success; but
having an effective, consistent plan can help you use
your resources wisely. Careful financial planning in-
creases the chance your financial goals will be achieved
and that you will have sufficient flexibility to handle
such contingencies as illness, job loss, and even finan-
cial crises.
The goal of this book is to remove the mystery from
the personal financial planning process and replace it
with the tools you need to take charge of your personal
finances. To organize this process, the text is divided into
six parts, as follows:
▶ Part 1: Foundations of Financial Planning
▶ Part 2: Managing Basic Assets
▶ Part 3: Managing Credit
▶ Part 4: Managing Insurance Needs
▶ Part 5: Managing Investments
▶ Part 6: Retirement and Estate Planning
Each part explains a different aspect of personal finan-
cial planning, as shown in Exhibit 1.1. This organizational

CHAPTER 1: Understanding the Financial Planning Process 3

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 Exhibit 1.1
Organizational Planning Model
This text emphasizes making financial decisions regarding assets, credit, insurance, investments, and retirement and estates.

Financial Actions

Financial Basic asset decisions Financial

Plans Credit decisions Results
Insurance decisions
Investment decisions
Retirement and estate decisions

scheme revolves around financial decision making
that’s firmly based on an operational set of financial
plans. We believe that sound financial planning enables
individuals to make decisions that will yield their desired
results.
have risen sharply as a result. About 75 percent of mar-
ried adults say that they and their mate share all their
money. Two incomes not only buy more, but they also
require greater responsibility to manage the money
wisely.

1-1a Improving Your Standard

of Living
With personal financial planning we learn to acquire, use,
and control our financial resources more efficiently. It al-
lows us to gain more enjoyment from our income and thus
to improve our standard of living—the necessities, com-
forts, and luxuries we have or desire.
Our quality of life is closely tied to our standard
of living. Although other factors—geographic location,
public facilities, local cost of living, pollution, traffic, and
population density—also affect quality of life, wealth is
commonly viewed as a key determinant. Material items
such as a house, car, and clothing as well as money
available for health care, education, art, music, travel,
and entertainment all contribute to our quality of life.
Of course, many so-called wealthy people live “plain”
lives, choosing to save, invest, or support philanthropic
organizations with their money rather than indulge in
luxuries.
One trend pro-
standard of living the necessities, foundly affecting our
comforts, and luxuries enjoyed or standard of living is
desired by an individual or family the two-income family.
average propensity to What was relatively rare
consume the percentage of each in the early 1970s has
dollar of income, on average, that
become commonplace
a person spends for current needs
rather than savings today, and the incomes
of millions of families
4 PART ONE: Foundations of Financial Planning
1-1b Spending Money Wisely
Using money wisely is a major benefit of financial
planning. Whatever your income, you can either
spend it now or save some of it for the future. De-
termining your current and future spending pat-
terns is an important part of personal money manage-
ment. The goal, of course, is to spend your money so
that you get the most satisfaction from each dollar.
Current Needs Your current spending level is
based on the necessities of life and your average
propensity to consume, which is the percentage
of each dollar of income, on average, that is spent
for current needs rather than savings. A minimum
level of spending would allow you to obtain only the
necessities of life: food, clothing, and shelter. Al-
though the quantity and type of food, clothing, and
shelter purchased may differ among individuals
depending on their wealth, we all need these items
to survive.
Some people with high average propensities to
consume earn low incomes and spend a large portion
of it on basic necessities. On the other hand, individu-
als earning large amounts quite often have low average
propensities to consume, in part because the cost of ne-
cessities represents only a small portion of their income.
Still, two people with significantly different in-
comes could have the same average propensity to

33609_ch01_ptg01.indd 4 20/12/18 10:31 PM

 consume because of differences in their standard say they need at least $5 million to feel rich. And more
of living. The person making more money may be- generally, most people say that it would take about
lieve it is essential to buy better-quality items or more twice their current net
items and will thus, on average, spend the same per- worth to feel wealthy.
centage of each dollar of in- The more we earn and
come as the person making the less we devote to

canbedone/Shutterstock.com
far less. current spending, the
more we can commit to
Future Needs A care- meeting future needs.
fully developed financial Regardless of income or
plan should set aside a por- wealth, some portion of
tion of current income for current income should
future spending. Placing be set aside regularly for
these funds in various sav- future use. Doing so cre-
ings and investment vehicles ates good saving habits
allows you to earn a return on and provides for your fu-
your funds until you need them. For example, you may ture needs.
want to build up a retirement fund to maintain a desirable
standard of living in your later years. Instead of spending
1-1c Accumulating Wealth
the money now, you defer actual spending until the fu-
ture when you retire. Nearly 35 percent of Americans In addition to using current income to pay for ev-
say retirement planning is their most pressing financial eryday living expenses, we often spend it to acquire
concern. Other examples of deferred spending include assets such as cars, a home, or stocks and bonds. Our
saving for a child’s education, a primary residence or va- assets largely determine how wealthy we are. Personal
cation home, a major acquisition (such as a car or home financial planning plays a critical role in the accumula-
entertainment center), or even a vacation. tion of wealth by directing our financial resources to
The portion of current income we commit to future the most productive areas.
needs depends on how much we earn and also on our One’s wealth is the net total value of all the
average propensity to consume. Many affluent Americans items that the individual owns. Wealth consists of
financial and tangible assets. Financial assets are
intangible, paper assets such as savings accounts
and securities (stocks, bonds, mutual funds, and

Financial Planning Tips
BE SMART In PlAnnIng YoUR FInAncIAl goAlS
Success is most likely if your goals are:
Specific: What do I want to achieve? What is
required of me, and what are my constraints?
Measurable: How much money is needed? How
will I know if I am succeeding?
Attainable: How can I do this? Is this consistent
with my other financial goals?
Realistic: Am I willing and able to do this?
Timely: What is my target date? What short-term
goals must be achieved along the way to achieve
my longer-term goals?
Inspired by Paul J. Meyers, Attitude Is Everything, The Meyer Re-
source Group, 2003.
so forth). They are earning assets that are held for
their expected future returns. Tangible assets,
in contrast, are physical assets such as real estate
and automobiles. These assets can be held for ei-
ther consumption (e.g., your home, car, artwork,
or jewelry) or investment purposes (e.g., a duplex
purchased for rental income). The goal of most
people is to accumulate as much wealth as possible
while maintaining
current consumption
at a level that pro- wealth the total value of all items owned
by an individual, such as savings accounts,
vides the desired
stocks, bonds, home, and automobiles
standard of living.
financial assets intangible assets, such
To see how you com-
as savings accounts and securities, that are
pare with the typical
acquired for some promised future return
American in finan-
cial terms, check tangible assets physical assets, such
as real estate and automobiles, that can be
out the statistics in
held for either consumption or investment
Exhibit 1.2. purposes

CHAPTER 1: Understanding the Financial Planning Process 5

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 Exhibit 1.2
The Average American, Financially Speaking
This financial snapshot of the “average American” gives you an idea of where you stand in terms of income, net worth, and
other measures. It should help you set some goals for the future.
Income and Assets
What Do We Earn? (median)
All families $52,700
What Are We Worth? (median)
All families $97,300
Home Ownership (median)
Value of primary residence $185,000
Mortgage on primary residence 111,000
How Much Savings Do We Have? (median)
Pooled investment funds (excluding money market) $114,000
Stocks 25,000
Bonds 100,000
Bank accounts/CDs 24,500
Retirement accounts 60,000
Source: Adapted from Jesse Bricker, Lisa J. Dettling, Alice Henriques, Joanne W. Hsu, Lindsay Jacobs, Kevin B. Moore, Sarah Pack, John Sabelhaus, Jeffrey Thompson, and Richard A. Windle, “Changes in U.S. Family
Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances,” Board of Governors of the Federal Reserve System, Washington, D.C. (September 2017, vol. 103, no 3.), Data is for 2016. https://www
.federalreserve.gov/publications/files/scf17.pdf, Tables 1–4, accessed November 2018.

1-2 thE PERsONAL fINANcIAL need to accomplish financially, and how you intend to do
it, gives you an edge over someone who merely reacts to
PLANNING PROcEss financial events as they unfold. Just think of the example
provided by the financial crisis of 2007–2008. Do you
LO2 Many people mistakenly assume that personal think that a financial plan would have helped in weather-
financial planning is only for the wealthy. However, ing the financial storm?
nothing could be further from the
truth. Whether you have a lot of money 1-2a Steps in the
or not enough, you need personal fi- Whether you have a
Financial Planning Process
nancial planning. If you have enough lot of money or not
money, planning can help you spend and The financial planning process trans-
enough, you need
invest it wisely. If your income seems lates personal financial goals into spe-
inadequate, taking steps to plan your personal financial cific financial plans, which then help
financial activities will lead to an im- planning. you implement those goals through
proved lifestyle. Personal financial financial strategies. The financial plan-
planning is a systematic process that ning process involves the six steps
considers the important elements of an individual’s fi- shown in Exhibit 1.3.
nancial affairs and is aimed at fulfilling his or her finan- You start with financial goals, formulate and im-
cial goals. plement financial plans and strategies to reach them,
Everyone—including monitor and control progress toward goals through
personal financial recent college graduates, budgets, and use financial statements to evaluate the
planning a systematic process young married couples, plan and budget results. This leads you back to rede-
that considers important elements
and others—needs to de- fining your goals so that they better meet your current
of an individual’s financial affairs in
order to fulfill financial goals velop a personal financial needs, and to revising your financial plans and strate-
plan. Knowing what you gies accordingly.
6 PART ONE: Foundations of Financial Planning

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 Exhibit 1.3
The Six-Step Financial Planning Process
The financial planning process translates personal financial goals into specific financial plans and strategies, implements them,
and then uses budgets and financial statements to monitor, evaluate, and revise plans and strategies as needed. This process
typically involves the six steps shown in sequence here.
1. Define financial goals.

2. Develop financial plans and strategies to achieve goals.

3. Implement financial plans and strategies.

4. Periodically develop and implement budgets to monitor and control progress toward goals.

5. Use financial statements to evaluate results of plans and budgets, taking corrective action as required.

6. Redefine goals and revise plans and strategies as personal circumstances change.

Let’s now look at how goal setting fits into the plan-
ning process. In Chapters 2 and 3, we’ll consider other
information essential to creating your financial plans:
personal financial statements, budgets, and taxes.

1-2b Defining Your Financial Goals

Financial goals are the results that an individual
wants to attain. Examples include buying a home,
building a college fund, and achieving financial inde-
Patpitchaya/Shutterstock.com

pendence. What are your financial goals? Have you

spelled them out? It’s impossible to effectively man-
age your financial resources without financial goals.
We need to know where we are going, in a financial
sense, to effectively meet the major financial events
in our lives. Your financial goals or preferences must
be stated in monetary terms because money and
the satisfaction it can bring are an integral part of Yet it’s not money,
as such, that most financial goals results that an
financial planning. individual wants to attain, such as
people want. Rather,
buying a home, building a college fund,
The Role of Money About 75 percent of Americans we want the utility, or achieving financial independence
believe that money is freedom. Money is the medium which is the amount
of exchange used to measure value in financial trans- of satisfaction re- money the medium of exchange
used as a measure of value in financial
actions. It would be difficult to set specific personal ceived from buying transactions
financial goals and to measure progress toward achiev- quantities of goods
utility the amount of satisfaction
ing them without the standard unit of exchange pro- and services of a given
received from purchasing certain types
vided by the dollar. Money, as we know it today, is quality, that money or quantities of goods and services
the key consideration in establishing financial goals. makes possible.
CHAPTER 1: Understanding the Financial Planning Process 7

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 bEhAvIOR MAttERs
Practicing Financial Self-Awareness
Are you aware of your financial behavior, its causes,
and its consequences? For example, are you routinely
relying too heavily on your credit card? Are you saving
enough to buy a new car or to fund your retirement?
And the bottom line: Are you continuing the same
financial behavior you have in the past and yet expect-
ing different results?
The first decisive step in taking control of your life is
to be aware of what you’re thinking, feeling, and doing.
Be financially self-aware: observe your own thoughts,
feelings, and behavior concerning your finances. Take
notes on things that affect how you feel, and what you
do about financial decisions. Watch yourself, and be
honest about your feelings concerning money and your
future.
People may choose one item over another be-
cause of a special feature that provides additional
utility. For example, some people will pay more for
a car with satellite radio than one with only an au-
dio player. The added utility may result from the
actual usefulness of the special feature, from the
“status” it’s expected to provide, or from both. Re-
gardless, people receive varying levels of satisfac-
tion from similar items, and their satisfaction isn’t
necessarily directly related to the cost of the items.
We, therefore, need to consider utility along with
cost when evaluating alternative qualities of life,
spending patterns, and forms of wealth accumulation.
Go to Smart Sites
Is getting the lowest price important to you? Where can
you search for the best prices? MindTap includes “Smart
Sites,” a list of resources and sites that offer additional
information on topics in the PFIN text.
8 PART ONE: Foundations of Financial Planning
33609_ch01_ptg01.indd 8
Then ask yourself two critically important questions:
● Have I clearly stated the financial goals that are
important to me and, if so, what am I doing today
to make sure I achieve them? The heart of financial
planning is determining where you are today and
where you want to be in the future. This implies the
need for a financial plan: limited resources sometimes
bring painful trade-offs.
● Is the way I spend money consistent with what I
believe? Effective financial planning takes the time
to develop a plan that lines up your values and your
use of money.
Source: Adapted from Carl Richards, “Practicing Radical Self-Awareness,”
Behaviorgap.com, https://us2.campaign-archive.com/?u=23ce2ac179e81
58f7583c4e3f&id=86f42577bc&e=b50e826a9e, accessed November 2018.
The Psychology of Money Money and its utility are not
only economic concepts; they’re also closely linked to the
psychological concepts of values, emotion, and personal-
ity. Your personal value system—the important ideals and
beliefs that guide your life—will also shape your attitude
toward money and wealth accumulation. If you place a
high value on family life, you may choose a career that
offers regular hours and less stress or choose an employer
who offers flextime rather than a higher-paying position
that requires travel and lots of overtime.
You may have plenty of money but choose to live
frugally and do things yourself rather than hire someone
to do them for you. Or you may spend a high proportion
of your current income on acquiring luxuries. Financial
goals and decisions should be consistent with your per-
sonal values. You can formulate financial plans that pro-
vide the greatest personal satisfaction and quality of life
by identifying your values.
Money is an important motivator of personal be-
havior because it has a strong effect on self-image.
Each person’s unique personality and emotional
makeup determine the importance and role of money
in his or her life. You should become aware of your
own attitudes toward money because they are the ba-
sis of your “money personality” and money manage-
ment style.
Some questions to ask yourself include: How im-
portant is money to me? Why? What types of spending
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 give me satisfaction? Am I a
risk taker? Do I need large fi-
nancial reserves to feel secure?
Knowing the answers to these
questions is a prerequisite for
developing realistic and effec-
tive financial goals and plans.
Trade-offs between current
and future benefits are strong-
ly affected by values, emotions,
and personality. Effective fi-
nancial plans are both eco-
nomically and psychologically
sound. They must not only con-
sider your wants, needs, and
financial resources but must
also realistically reflect your
personality and emotional re-
actions to money.
1-2c Money and Relationships
The average couple spends between 250 and 700 hours
planning their wedding. While most couples spend
less than $10,000 on the big day, the average cost has
risen to over $33,000, depending on where they live. But
with all the hoopla surrounding the wedding day, many
couples overlook one of the most important aspects of
marriage: financial compatibility. Money can be one of
the most emotional issues in any relationship, including
that with a partner, parents, or children. Most people are
uncomfortable talking about money matters and avoid
such discussions, even with their partners. However,
differing opinions on how to spend money may threaten
the stability of a marriage or cause arguments between
parents and children. Learning to communicate with
your partner about money is a critical step in developing
effective financial plans.
The best way to resolve money disputes is to be
aware of your partner’s financial style, consistently
communicate openly, and be willing to compromise.
It’s highly unlikely that you can change your partner’s
style, but you can work out your differences. Financial
planning is an especially important part of the con-
flict resolution process. You need to work together to
develop your financial goals.
1-2d Types of Financial Goals
Financial goals cover a wide range of financial aspira-
tions: controlling living expenses, meeting retirement
needs, setting up a savings and investment program, and
minimizing your taxes. Other important financial goals
33609_ch01_ptg01.indd 9
zimmytws/Shutterstock.com
include having enough money to live as well as possible,
being financially independent, sending children to col-
lege, and providing for retirement.
Financial goals should be defined as specifically
as possible. Saying that you want to save money next
year is not a specific goal. How much do you want
to save, and for what purpose? A goal such as “save
10 percent of my take-home pay each month to start
an investment program” states clearly what you want
to do and why.
Because they are the basis of your financial plans,
your goals should be realistic and attainable. If you set
a savings goal too high—for example, 25 percent of
your take-home pay when your basic living expenses
already account for 85 percent of it—then your goal
is unattainable and there’s no way to meet it. But if
savings goals are set too low, you may not accumulate
enough for a meaningful investment program. If your
goals are unrealistic, they’ll put the integrity of your
financial plan at risk and be a source of ongoing finan-
cial frustration.
It’s important to involve your immediate family
in the goal-setting process. When family members
“buy into” the goals, it reduces the likelihood of
future conflicts and improves the family’s chances
for financial success. After defining and approving
your goals, you can prepare appropriate cash budgets.
Finally, you should assign priorities and a time frame
to financial goals. Are they short-term goals for the
next year, or are they intermediate or long-term goals
that will not be achieved for many more years? For
example, saving for a vacation might be a medium-
priority, short-term goal, whereas buying a larger
CHAPTER 1: Understanding the Financial Planning Process 9
20/12/18 10:31 PM
 Financial Planning Tips
BUSTIng coMMon FInAncIAl PlAnnER MYTHS
● Myth 1: My finances aren’t complicated—I can do
this on my own. While most people can likely pay
down credit cards, set up an IRA, and do some basic
investing, professionals can handle the nuances of
financial planning better. Your finances may well be
more complicated than you realize. For example,
many parents with young kids realize they need to
buy life insurance. But they often overlook disability
insurance, which covers some lost income if one
or both parents are unable to work. Professionals
are more likely to keep the big picture in mind and
second opinions can be helpful.
● Myth 2: Only the rich need financial planners.
Financial planning is needed by all who want to set
money goals and design a plan to achieve those
goals. Many people wrongly assume that a good
financial planner will charge more than they can
afford. In fact, there are planners who work with
younger people and price-sensitive families under
fixed-fee or hourly arrangements.
● Myth 3: Financial planners provide only invest-
ing advice. While investing advice is important,
many planners can provide good advice on broad
areas that include insurance, estate and retirement
planning, and budgeting.
home may be a high-priority, intermediate goal and
purchasing a vacation home a low-priority, long-term
goal. Normally, long-term financial goals are set first,
followed by a series of corresponding short-term and
intermediate goals.
1-2e Putting Target Dates
on Financial Goals
Financial goals are most effective when they are set
with goal dates. Goal dates are target points in the
future when you expect to have achieved or completed
certain financial objec-
tives. They may serve
goal dates target dates in as progress checkpoints
the future when certain financial
toward some longer-term
objectives are expected to be
completed financial goals and/or as
deadlines for others.
10 PART ONE: Foundations of Financial Planning
33609_ch01_ptg01.indd 10
● Myth 4: Once I’ve hired a financial planner, I’m
good to go for life. A good planner will help you get
your finances organized and help you monitor them.
But you do the heavy-lifting of contributing more to
your 401(k) plan, changing your withholding taxes
when needed, and deciding whom to name as insur-
ance and investment account beneficiaries. A good
financial planner listens to the client over the entire
financial life cycle and provides accountability.
● Myth 5: Credentials don’t matter much. Not true.
You want a planner who has passed rigorous certifi-
cation exams that require him or her to apply finan-
cial skills to practical situations. For example, holders
of the Certified Financial Planner (CFP®) designation
pass comprehensive exams on investment manage-
ment, insurance, tax planning, employee benefits,
and retirement and estate planners. And holders of
the Chartered Financial Analyst (CFA®) designation
have passed three levels of exams on comprehensive
investment management. Looking over a group of
well-trained planners and investment advisors for the
best personal fit is the way to go.
Source: Adapted from Sheryl Nance-Nash, “6 Common Myths About
Financial Planning – Busted,” LearnVest, https://www.learnvest.com/2014/10
/common-myths-about-financial-planning, accessed November 2018.
EXAMPLE: Target Dates for Financial Goals
Harry and Olivia Williams are both 28 and have been
married for one year. They have set financial goals of
buying a boat for $3,000 in 2020, accumulate a net
worth of $20,000 by 2024, and accumulate a net worth
of $50,000 by 2032.
Long-Term Goals Long-term financial goals should
indicate wants and desires for a period covering
about 6 years out to the next 30 or 40 years. Although
it’s difficult to pinpoint exactly what you will want
30 years from now, it’s useful to establish some ten-
tative long-term financial goals. However, you should
recognize that long-term goals will change over time
and that you’ll need to revise them accordingly. If the
20/12/18 10:31 PM
 goals seem too ambitious, you’ll want to make them
more realistic. If they’re too conservative, you’ll want
to adjust them to a level that encourages you to make
financially responsible decisions rather than squander
surplus funds.

Short-Term and Intermediate Goals Short-term

financial goals are set each year and cover a 12-month
period. They include making substantial, regular con-
tributions to savings or investments in order to ac-
cumulate your desired net worth. Intermediate goals
bridge the gap between short- and long-term goals.

RomanR/Shutterstock.com
And of course, both intermediate and short-term goals
should be consistent with your long-term goals.
Short-term goals become the key input for the cash
budget, a tool used to plan for short-term income and
expenses. To define your short-term goals, consider your
immediate goals, expected income for the year, and long-
term goals. Short-term planning should also include es-
tablishing an emergency fund with at least six months’
worth of income. This special savings account serves as a
safety reserve in case of financial emergencies such as a
temporary loss of income.
DO IT NOW: Start a List of Your Financial
Goals Yogi Berra summed it upwell: “If you don’t
know where you’re going, you might not get there.”
And so it is with your financial goals. Pick up some pa-
per now and start a list of your financial goals. Maybe
it’s as simple as saving $25 by the end of the month or
as lofty as saving $200,000 for retirement by the time
you’re 50. You’ll never achieve your goals if you don’t
know what they are, much less know whether they’re
realistic. Go ahead and dream. List your goals (short-
term, intermediate, and long-term) and start laying
out how you’ll get there. You can do it now.
Unless you attain your short-term goals, you proba-
bly won’t achieve your intermediate or long-term goals.
It’s tempting to let the desire to spend now take prior-
ity over the need to save for the future. But by making
some short-term sacrifices now, you’re more likely to
have a comfortable future. Worksheet 1.1 is a conve-
nient way to summarize your personal financial goals. It
groups them by time frame (short term, intermediate,
or long term) and lists a priority for each goal (high,
medium, or low), a target date to reach the goal, and an
estimated cost.
We have filled out the form showing the goals
that Jack and Lily Taylor set in December 2019. The
Taylors were married in 2016, own a condominium
in a Midwestern suburb, and have no children. Be-
cause Jack and Lily are 28 and 26 years old, respec-
tively, they have set their longest-term financial goal
33 years from now, when they want to retire. Jack has
just completed his fifth year as a marketing repre-
sentative for a large pharmaceutical company. Lily, a
former elementary school teacher, finished her MBA
in May 2018 and began working at a local advertising
agency. Jack and Lily love to travel and ski. They plan
to start a family in a few years, but for now they want
to develop some degree of financial stability and in-
dependence. Their short-term goals include purchas-
ing assets (clothes, furniture, and car), reducing debt,
reviewing insurance, increasing savings, and planning
for retirement.
1-3 fROM GOALs tO PLANs:
A LIfEtIME Of PLANNING
LO3 How will you achieve the financial goals you set
for yourself? The answer, of course, lies in the financial
plans you establish. Financial plans provide the road map
for achieving your financial goals. The six-step financial
planning process (introduced in Exhibit 1.3) results in
separate yet interrelated components covering all the
important financial elements in your life.
Some elements deal with the more immediate as-
pects of money management, such as preparing a budget
to help manage spending. Others focus on acquiring ma-
jor assets, controlling borrowing, reducing financial risk,
providing for emergency funds and future wealth accu-
mulation, taking advantage of and managing employer-
CHAPTER 1: Understanding the Financial Planning Process 11

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 wORkshEEt 1.1 SUmmary oF PerSonal FInancIal GoalS
Set financial goals carefully and realistically, because they form the basis for your
personal financial plans. Each goal should be clearly defined and have a priority, time
frame, and cost estimate.

Personal Financial Goals

Name(s)
Jack and Lily Taylor Date
December 27, 2020
Short-Term Goals (1 year or less)

Goal Priority Target Date Cost Estimate

Buy new tires and brakes for Honda High Feb. 2021 $ 500
Take Utah ski trip Medium Mar. 2021 1,800
Buy career clothes for Lily High May 2021 1,200
Buy new work clothes for Jack Medium June 2021 750
Replace stereo speakers Low Sept. 2021 1,100

Intermediate Goals (2 to 5 years)

Goal Priority Target Date Cost Estimate

Start family High 2022 -
Take 2-week European Vacation Medium 2022–23 5,000
Repay all loans except mortgage High 2023 $ 7,500
Trade Focus and buy larger car High 2023 10,500
Review insurance needs High 2023 -
Buy new bedroom furniture Low 2025 4,000
Accumulate $100,000 net worth High 2025 -
Long-Term Goals (6 1 years)

Goal Priority Target Date Cost Estimate

Begin college fund for children High 2026 ? /year

Diversify/increase investment portfolio High 2027 Varies
Take Hawaiian vacation Low 2028 $ 10,000
Increase college fund contributions High 2028 -
Buy larger home High 2030 $ 250,000
Retire from jobs High 2058 ?

sponsored benefits, deferring and minimizing taxes, pro-
viding for financial security when you stop working, and
ensuring an orderly and cost-effective transfer of assets
to your heirs.
In addition to discussing your financial goals and
attitudes toward money with your partner, you must
allocate responsibility for money management tasks and
decisions. Many couples make major decisions jointly
and divide routine financial decision making on the
basis of expertise and interest. Others believe it is
important for their entire family to work together as a
team to manage the family finances. They hold family
financial meetings once every few months to help their
children understand how the household money is spent.

12 PART ONE: Foundations of Financial Planning

33609_ch01_ptg01.indd 12 20/12/18 10:31 PM

 1-3a The Life Cycle the kinds of financial plans we
need to pursue.
of Financial Plans New career strategies—
Financial planning is a dynamic planned and unplanned job
process. As you move through differ- changes—may require that financial
ent stages of your life, your needs plans be revised. Many young people
and goals will change. Yet certain fi- focus on their careers and building a
nancial goals are important regard- financial base before marrying and
less of age. Having extra resources to having children. The families of wom-
fall back on in an economic downturn en who interrupt their careers to stay
or period of unemployment should home with their children, whether
be a priority whether you are 25, 45, for six months or six years, will ex-
or 65. Some changes—a new job, perience periods of reduced in-
marriage, children, moving to a come. A divorce, a spouse’s death,
new area—may be part of your or remarriage can also drastically

Mega Pixel/Shutterstock.com
original plan. change your financial circumstances.
More often than not, you’ll face Many people in their 30s, 40s,
unexpected “financial shocks” during and 50s find themselves in the
your life: loss of a job, a car accident, “sandwich generation”: supporting
divorce or death of a spouse, a long their elderly parents while still rais-
illness, or the need to support adult chil- ing their own children and paying for
dren or aging parents. With careful planning, you can get college. And some people must cope with reduced income
through tough times and prosper in good times. You need due to jobs lost because of corporate downsizing or early
to plan ahead and take steps to weather life’s financial storms retirement.
successfully. For example, setting up an emergency fund
or reducing monthly expenses will help protect you and
your family financially if a setback occurs. 1-3b Plans to Achieve
As we move from childhood to retirement age, we Your Financial Goals
go through different life stages. Exhibit 1.4 illustrates
the various components of a typical personal financial Financial goals can range from short-term goals, such
planning life cycle as they relate to these different life as saving for a car, to long-term goals, such as sav-
stages. While the exhibit shows more detail, the life cycle ing enough to start your own business. Reaching your
involves three general stages: (1) wealth accumulation, particular goals requires different types of financial
(2) wealth preservation, and (3) wealth transfer. It shows planning.
that the young tend to borrow, the middle-aged tend
Asset Acquisition Planning One of the first cat-
to save the most, and when we get older we run down
egories of financial planning we typically encounter
our savings to fund retirement. This exhibit presents the
is asset acquisition. We accumulate assets—things we
organizing framework of the entire financial planning
own—throughout our lives. These include liquid as-
process. We will refer to it throughout the book—and we
sets (cash, savings accounts, and money market funds)
suggest you do so for the rest of your life.
used to pay everyday expenses, investments (stocks,
As we pass from one stage of maturation to the
next, our patterns of income, home ownership, and bonds, and mutual funds) acquired to earn a return
debt also change. From early child- on our money, personal property (movable property
hood, when we rely on our parents for such as automobiles, household fur-
support, to early adulthood, when we nishings, appliances, clothing, jewelry,
As our emphasis in home electronics, and similar items),
hold our first jobs and start our fami-
lies, we can see a noticeable change life changes, so do and real property (immovable prop-
in income patterns. For example, the kinds of financial erty; land and anything fixed to it, such
those in the pre-retirement 45–64 age as a house). Chapters 4 and 5 focus on
plans we need to important considerations for manag-
group tend to have higher income
than those younger than age 45. Thus, pursue. ing liquid assets and other major assets
as our emphasis in life changes, so do such as automobiles and housing.

CHAPTER 1: Understanding the Financial Planning Process 13

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 Exhibit 1.4
The Personal Financial Planning Life Cycle
As you move through life and your income and living cost patterns change, you’ll typically have to pursue a variety of financial plans.
For instance, after graduating from college, your focus likely will be on buying a car and a house, and you’ll be concerned about
health and automobile insurance to protect against loss.

Wealth Wealth
Wealth accumulation
preservation transfer
Early High Pre- Family Pre- Retirement
childhood school family formation/ retirement
and inde- career
college pendence development Income

Retirement and estate planning

Tax planning
$

Employee benefit planning

Savings and investment planning

Liability and insurance planning

Asset acquisition planning

0
10 20 30 40 50 60 70 80 90
Age

Liability and Insurance Planning Another category

of financial planning is liability planning. A liability is
something we owe, which is measured by the amount
of debt we incur. We create liabilities by borrowing
money. By the time most of us graduate from college,
we have debts of some sort or another—examples in-
clude education loans, car loans, credit card balances,
and so on. Our borrowing needs typically increase as

Shutter_M/Shutterstock.com
we acquire assets like a home, furnishings, and appli-
ances. Whatever the source of credit, such transactions
have one thing in common: the debt must be repaid
at some future time. How we manage our debt burden
is just as important as how we manage our assets.
Managing credit effectively requires careful planning,
which is covered in Chapters 6 and 7.
Obtaining adequate insurance coverage is also you have accumulated over many years of hard work.
essential. Like borrowing money, obtaining insurance is But having more insurance than necessary can be
often introduced relatively early in our life cycle (usually costly too. We’ll examine how to manage your insurance
early in the family formation stage). Insurance is a way needs in Chapters 8, 9, and 10.
to reduce financial risk and protect both income (life,
health, and disability insurance) and assets (property Savings and Investment Planning As your income
and liability insurance). Most consumers regard insur- begins to increase, so does the importance of saving and
ance as absolutely essential—and for good reason. One investment planning. Initially, people save to establish
serious illness or accident can wipe out everything an emergency fund for meeting unexpected expenses.
14 PART ONE: Foundations of Financial Planning

33609_ch01_ptg01.indd 14 20/12/18 10:31 PM

Another random document with
no related content on Scribd:
everywhere of the blessed white horse upon the purple ground, an
ensign given to Dido by the ancient and immortal gods, should
remind each and every one of his duty.
Thus, with the standards gaily fluttering in the breeze from every
eminence, and festoons of flags across the streets, the fair city of
New Carthage looked more like a city celebrating some joyous
festival than a town about to be plunged into all the horrors of a most
bloody combat.
The trained veterans at her disposal did not much exceed some
two thousand men. Fifteen hundred of these Elissa placed under the
orders of a chief named Mago, with instructions to post the greater
number along the walls, both on the land side and the sea side, upon
the battlements of which, at every point, were heaped-up piles of
darts, huge stones, and masses of lead. Moreover, cross-bows,
called scorpions, on account of the sting they discharged in the
shape of a small but deadly missile, were ranged round the walls at
short intervals, with their ammunition placed ready beside them.
The remainder of Mago’s men were stationed either upon the
commanding eastern hill that jutted out into the sea, upon which
stood the temple of Æsculapius, or in the citadel.
Another superior officer whom she had under her orders was
named Armes. Him she posted, with two thousand men of those
whom she had trained from the townspeople, at the gate leading to
the isthmus.
A body of one hundred men of the veterans she reserved to
herself as a personal guard, to accompany her whither she would
throughout the expected siege, and another hundred under old
Captain Gisco she left in charge of the palace and the women
therein. The palace was so situated that it was only immediately in
danger from the sea side on the south-east, where the walls of the
garden formed a part of the actual walls of the city. Upon the other
three sides the high and battlemented walls of the garden were so
placed that, while they overlooked the town, they were quite
separate from its outward defences, and the only entrance upon that
side was a gateway, so defended by a drawbridge over a deep fosse
that a few men could defend it against thousands. The small postern
door on the south-east side, leading to the harbour, Elissa caused to
be barricaded with stones, while the marble steps leading down to
the sea she had partially destroyed and partially blocked up with
strongly tethered masses of the prickly pear cactus which grew so
freely on the cliffs, and which were calculated to form a terrible
obstacle to any escalading foe.
In conclusion Elissa gave instructions for bands of the armed
inhabitants of the town to be placed on the walls at intervals along
the whole of the sea front, which was menaced by the powerful fleet
of Lælius, and upon the land front facing the isthmus, as either of
these parts could, although the walls were very high, be assailed
with scaling ladders. She had thus made the very best disposition of
the small force at her command. One place, however, she failed to
garrison in strength, partly from want of men and partly on account of
its natural strength, and this was where, on the north side of the
isthmus, the lagoon washed the walls of the city. And now, having
done all in her power for the defence, she returned to her palace,
and assembled all the frightened women therein to the morning
repast.
Elissa herself was clad in her war gear, and merely removed her
golden helmet, and cast her beautiful shield, inlaid with its golden
horse, upon one side ere she sank upon one of the silk-cushioned
divans around the board whereon was spread the meal. The eye of
the young maiden was bright, her look determined, and her cheek
flushed with a noble courage. Although still only in her twenty-first
year, she had all the ability and experience of an old commander;
and, noting her confident appearance, her youth was quite forgotten
by the other women present, who looked to her for protection.
One of them was a most lovely maiden named Idalia, a girl of
seventeen summers, with large, dreamy eyes like those of a fawn.
Her beauty was so great, her face such a pure oval and so gentle,
her willowy form so bewitchingly enticing and rounded, that she was
quite the equal in beauty of Elissa herself, although in an entirely
different style. She was, by nature, timorous even as the fawn whom
her eyes resembled.
Rising from her seat, Idalia approached Elissa, whose glorious
masses of dark, ruddy hair, having broken loose from their
restraining fillet, were streaming over the light steel cuirass inlaid
with gold which covered her. The sunlight, breaking in from an open
window behind, shone through the almost black tresses, distinctly
showing up the ruddy lights beneath. Without a word Idalia, whose
eyes were filled with tears, caressingly laid an arm round Elissa’s
neck and kissed her gently, almost reverently. Then, lifting up the
flowing locks, she pressed them also to her lips, then quietly
readjusted them below the silver fillet which had previously
restrained them.
“Wherefore dost thou weep?” exclaimed Elissa kindly, patting the
pale cheek so near her own. “Fear not, we shall beat off the
Romans, and thou shalt come to no harm. So banish these tears; I
will protect thee, pretty one. Come, be reassured by me; do I look
fearful of the result? That thy life shall be safe I warrant thee, for
whoever else may fall, the great goddess Tanais, whose votary thou
art, will surely protect such a beauteous young maid as thou.”
“Oh, Elissa, dear Elissa!” replied the fair maid, in sad but musical
tones, “believe me that I trust in thee and in the goddess Tanais also;
but ’tis not for myself I weep. ’Tis with fear for my beloved Allucius.
Canst thou or the goddess Tanais protect him? Alas! I fear ’tis not in
thy power, and I weep lest he may fall.”
“Allucius, Prince of the Celtiberians, must do his duty with the rest
of us,” rejoined Elissa straightforwardly but not unkindly; “and he
hath a post of honour, since I have placed him as second in
command to Armes at the city gate. But should he fall, he will die a
most honourable death, and one that will be worthy of thee.
Therefore, sweet one, put a more cheerful face upon the matter, I
pray thee, for thou wouldst not have him act the poltroon, and shield
himself behind thy chiton, wouldst thou? But thou canst pray to the
gods for him.”
“Nay, nay,” cried the girl proudly, drawing herself up and dashing
away her tears, “I would not have him other than a noble soldier. I
thank thee for teaching me my duty, Elissa, and I will be brave.”
“I think thou art making a most unnecessary fuss, Idalia,” here
interrupted the Princess Cœcilia spitefully. “What folly thou dost talk
about this Allucius. Why trouble about him at all when thou knowest
that, with thy youth and thy beauty, thou are safe thyself? For the
worst that can happen to thee is that thou mayst fall perchance to
the lot of some Roman noble. Who knows but Scipio might take a
fancy to thee himself. Thou hast already met him, since thou wast
with Elissa at the Court of Syphax.”
“Princess Cœcilia!” exclaimed Idalia.
But Cœcilia continued peevishly in a torrent of words: “Nay,
interrupt me not; I know what thou wouldst say, that ’tis merely for
Elissa he hath come here, and that ’tis on account of her late foolish
coquettings with him in Numidia that all these miseries are come
upon us. For what other reason, save to make her his, hath he come
here to attack us women instead of going to fight Hasdrubal or Mago
as, had he been worth calling a man, he would have done? But fear
not thou, Idalia, those Romans are not particular as to whether they
have one girl or twenty; and since Elissa hath brought him here, and
thou art moreover a worshipper of Tanais, thou wilt doubtless be but
too pleased to save thyself at the expense of thine honour.”
“Princess Cœcilia!” exclaimed Elissa, whose eyes were flaming
with fury as she rose to her feet, “begone! retire to thine apartment,
and see thou stir not thence without mine orders. For despite thy
calumnies, I do much misdoubt me but ’tis thine own traitorous
conduct that hath brought the Romans upon us. Should it prove so,
beware! Cleandra, I beg thee accompany the princess to her
apartment, and give instructions to the palace guard that mine aunt
is to be considered a prisoner.”
“Oh! in sooth, Elissa!” exclaimed the now utterly cowed little
princess, turning pale, “in good sooth, Elissa, thou hast altogether
misunderstood me. I did but speak in jest. Indeed, I did not mean a
word.”
“Begone!” replied Elissa, “I will not hear thee more,” and she
waved her hand to Cleandra to lead her off.
This Cleandra did with some difficulty, for the little woman’s whole
body was now convulsed with sobs, and her knees trembled and
shook so together that she could scarcely stand. It was almost
impossible not to feel pity for her as the huge tears washed the paint
from her now considerably damaged complexion. But Cleandra
obeyed her orders, and then rejoined her mistress and friend, to
whose home in Spain she had voluntarily returned from Carthage
upon her husband’s recent death in a drunken brawl. This she had
done, even although by doing so she was exposing herself to a
renewal of the state of slavery in which she had been before her
departure. But the ties of mutual gratitude that united Elissa and
Cleandra were so great that there could scarcely now be considered
to exist ought save friendship between them.
After this incident the repast proceeded in peace. It was scarcely
concluded when two messengers rushed in, one crying out that the
Romans on the land side were advancing across the isthmus and
threatening the gate, the other that the Roman fleet was also
advancing and the sailors attempting to warp their ships to the base
of the cliff on the seaward side of the city so as to land the marines.
Elissa speedily arose, seized her shield and a sheaf of darts, and
repaired first to the battlements on the seaward side of the palace.
There she saw that the enemy were in the greatest confusion. The
ships were so numerous that they were getting in each other’s way.
There was a great deal of clamour, but owing to the vigorous
defence that was being made, Lælius was not likely for some time to
come to be able to land his men in any numbers upon the sloping
rocks. For the missiles being hurled upon the assailants from the
walls, falling upon the confused ships and boats, were causing the
greatest disorder. Some Carthaginian ships, moreover, which were
lying under the shelter of the walls, were advancing gallantly to a
counter attack, and although their numbers were few, they being only
eighteen, they were able to create an excellent diversion.
Accompanied by her body-guard, the young Regent next hurried
down to the battlements near the main gate of the city. Thence she
beheld the splendid and awe-inspiring sight of the whole of the
Roman army with ensigns flying and eagles displayed, drawn up in
line at some distance behind the bridge which crossed the waters of
the lagoon where it flowed out into the gulf.
The men of this noble army, whose arms and polished shields
were glittering with dazzling brilliancy in the sun, were standing
motionless.
Far in advance of the main body, however, a considerable
detached column of heavy-armed troops, consisting of Hastati,
Principes, and Triarii, in their three lines, were crossing the bridge,
maniple by maniple, and deploying the maniples into line, alternately
to the right and left in succession, as they arrived upon the city side
of the bridge over the narrow channel that traversed the isthmus.
Without a moment’s hesitation, Elissa gave the order from the top of
the ramparts where she was standing to Armes, the tribune
commanding the force of two thousand citizens within the gates, to
engage this attacking column of Romans. With promptitude this
order was obeyed; and sallying forth with gallantry, the troops under
Armes rushed upon the foe. Those who had crossed the bridge
were, with much slaughter, driven backwards, and thrust, either into
the lagoon to the one side, or into the inrunning waters of the gulf on
the other, while the centre of the Romans, falling back upon those
who were still crossing the bridge in rear, created considerable
confusion, and thus the centre also suffered much loss. The whole
body of Romans then fell back gradually towards their own main
body, the Carthaginians crossing the bridge, deploying in turn into
line, and pursuing them.
From her vantage point upon the battlements over the gateway,
Elissa could plainly see the error into which Armes was falling, for
she perceived that the Romans were gradually pushing up more and
more supports from their main body. She therefore sent instant
instructions to Armes to fall back again to the city gates. But her
messenger arrived too late, for before he had reached the
contending forces the largely reinforced Romans were advancing
once more, and, after a terrible hand-to-hand conflict, driving the
Carthaginians back again over the bridge. Armes was now slain; and
although Allucius, the lover of Idalia, made most heroic efforts to rally
the citizens, they were at length driven back headlong up to and
through the city gates, Allucius himself being sorely wounded. The
Romans would have entered the gates with the fugitives, but those
upon the wall commenced casting down a rain of missiles upon
them, causing much loss. Scipio, moreover, who was watching the
contest from a hill called the Hill of Mercury, caused the trumpets to
sound the retreat, for the number of men engaged was far too few,
and had they got through the gate they would have been eaten up
inside.
So the Romans fell back leisurely after a terrible carnage.
 While the remnants of the Carthaginians were rallying within the
walls, Scipio, without giving them time for rest, instantly despatched
a large number of men with scaling ladders to assault that part of the
walls which was situated near the principal gate. He himself followed
to superintend. Racing across the open, carrying the long ladders,
the Romans speedily reared them in a hundred places at once. But
the ladders were scarcely long enough to reach the top; moreover,
Elissa was ever present in person to animate and encourage the
defenders. In many cases the ladders broke with the weight of the
many armed men upon them, who were thus cast headlong; in other
cases, the men at the top became giddy, and fell off, carrying others
with them, while those who actually reached the top of the
battlements were hurled backwards upon their comrades.
Scipio himself, covered by three men armed with linked oblong
shields, to protect him from the vast number of missiles being hurled,
visited every part of the line in turn to encourage his followers; but it
was, he saw, of no use. Elissa, from the top of the ramparts, for her
part soon recognised him. Standing exposed upon the wall, she
cried out to him scornfully by name, saying that she, although only a
woman, had but one shield to his three, and that, nevertheless, she
defied him to single combat. And then she cast several javelines,
accompanying each dart with bitter and mocking remarks; but they
were all warded off by the shields of his three protectors. A second
time was Scipio now compelled to sound a retreat, and this time his
men fell back in confusion. Scipio, however, noticed that now the
time had come for the ebb of the tide from the lagoon, and further,
that a strong north wind was causing the waters to run out very
swiftly.
Therefore, to engage the attention of the triumphant
Carthaginians, he now sent a fresh body of a thousand troops, with
more scaling ladders, to the assault at the same place as before,
while he himself with another large body of men, after a lateral
movement to his left, plunged into the lagoon, crying out to his troops
that Neptune was, as he had foretold, coming to his assistance by
draining off its waters.
The water was not at first more than waist deep, and soon only
knee deep. Therefore, quite unobserved by the combatants near the
gate, he contrived to cross in safety and to mount the walls
unopposed. Then, rushing along the walls with one party, he soon
drove most of the defenders off the ramparts. Another party he sent
to attack the defenders of the gate from the inside. At the same time,
the Romans on the outside, hacking away at the gate with axes, cut
it through, and thus was it captured from within and without at once.
In the meantime, the Romans with the scaling ladders, who had
attacked from the dry land, also got over the walls as the defenders
fell back before Scipio’s party.
The loss on the Carthaginian side was now terrible, as the
Romans, forcing their way into the town by the gate and ramparts
alike, advanced, killing every living creature they met, whether man,
woman, child, or even domestic animals. This was done to strike
terror into the heart of the people, and was an old Roman custom
upon such occasions. Scipio, meanwhile, with a band of warriors
continued to advance along the ramparts, and soon met in hand-to-
hand combat Elissa with her guard. He cried to her to yield, but her
only reply was a dart, which transfixed his shield, for he had now but
one. The terrible hand-to-hand struggle continued on the walls, the
assailants and defenders alike seizing each other by the waist and
casting each other over.
At length, just as Scipio thought he was about to capture Elissa
and her few remaining followers, she gave an order to her men, who,
all turning swiftly, ran until they reached the gate in the wall of the
palace, which they entered, the gate being closed and the
drawbridge raised in the face of the victorious Scipio, who was thus
baulked, for the moment at all events, of his prey. It would, indeed,
have been a triumph for Elissa could she have but continued the
struggle until nightfall. For then she and those with her might have
escaped by a secret path they knew of down the rocks. But it was
not to be! Scarcely had she gained the shelter of the garden when a
storming party of truculent seamen, headed by Caius Lælius himself,
with whom was also Marcus Primus, burst over the walls on the
seaward side. And now another terrible struggle took place—this
time in the garden—the flowers being all trampled down, and the
garden walks and statues being soon covered with blood.
 At length, old Gisco and nearly all her guard being killed, Elissa
herself now quite exhausted, with a javeline transfixed in her
shoulder, resolved to die, sword in hand. She rushed upon Caius
Lælius, calling upon him loudly by name to slay her and so save her
from dishonour. But, her foot slipping in a pool of blood upon some
marble slabs near the fountain, she fell. Caius Lælius himself seized
her, and easily disarming her, made her his prisoner, thus protecting
her from further injury. And then Caius took the palace and all within
it without more bloodshed. For none but women were left alive
inside.
In the meanwhile, Mago and all his remaining men in the citadel
and upon the hill of Æsculapius had surrendered, and after this the
order was given to plunder the town.
Thus did the city of New Carthage fall into the hands of the
Romans under Scipio. He, the gates of the garden being thrown
open to him from within, arrived upon the scene before Elissa had
been removed within the palace walls, and terrible, indeed, was the
scene of carnage that met his view in the once peaceful garden. For,
animated by Elissa’s personal presence, the palace guard and
Elissa’s own body-guard had fought around her with the heroism of
despair. Thus, there were quite as many corpses or wounded men of
the Romans as of the Carthaginians lying about in all directions.
Some even were lying dead or dying, half in and half out of the fish-
pond, the waters of which were crimson with blood, while the gold-
fish, sickened by the gore, were swimming round and round in little
circles, belly uppermost.
In other places the bodies of dead men, some of whom yet
grasped each other by the throat, were half-buried in masses of
geranium or carnation plants, the crimson of whose petals formed
but a variety of colour with the crimson and purple hues of the still
warm life-blood with which the green leaves were all drenched and
befouled. Others, again, in falling, had clasped a standard rose-
bush, and, pulling it down with them, now lay with their pale faces
turned skywards, buried in a mass of sweet-scented roses pressing
against their ghastly cheeks.
Although her left shoulder was pierced and mangled, Elissa’s
wound was not apparently very dangerous. She had retained perfect
consciousness while Caius Lælius extracted the weapon, which he
did by cutting off the haft and drawing the head through; but from the
agony caused by this operation she had swooned and fallen back
insensible only a moment before Scipio arrived upon the scene of
the bloody conflict; and she was now lying as one dead.
 CHAPTER VI.
CŒCILIA’S DEGRADATION.

Scipio burst into the palace garden flushed with the joy of victory,
but when he saw his beloved Elissa lying at his feet, he forgot
everything, save that there lay, apparently lifeless, the body of the
woman whom he loved. He stood for a moment gazing, then angrily
turned upon Lælius.
“What is this, Caius? Hast thou slain her? Thou hast surely not
dared to slay Elissa? But nay, my friend,” he continued, his anger
quickly turning to grief, “I know that thou didst love her even as I did.
Forgive me for thus wronging thee. Give me thy hand, my comrade.”
Then throwing himself upon the ground by her side, Scipio cried:
“Oh, Elissa, my beloved Elissa, art thou dead? for if thou art, then
will I not survive thee! Gone is the glory of my victory! thrice
accursed be the hand that hath struck thee down!”
Gently he raised her in his arms, and, aided by Caius Lælius,
reverently they removed her golden helmet and the corselet of steel
inlaid with gold, beneath which she was clad in but a silken vest of
Tyrian purple, which, being all drenched with blood, they were forced
partly to remove in order to staunch the still flowing gore.
Commanding his followers to fall back to a distance, Scipio
remained upon his knees supporting her, with her beautiful face lying
upon his shoulder; while Caius Lælius brought some water in his
helmet from the waters of the upspringing fountain, which were
fresh, and unstained with blood.
While she was being supported thus, and the two men were
ministering to her, bathing her face and binding up her wound, Elissa
recovered her senses with a sigh.
For a few seconds she did not realise the situation, and remained
motionless, and then the whole sad truth burst upon her. With a bitter
smile she spoke.
“And so it hath then come to pass, oh, Scipio! and thou hast
conquered me and killed my faithful troops, and I am now thy slave. I
have not forgotten! I was but now, even as thou art thyself, a warrior,
then why hast thou removed my harness and exposed my person to
the crowd, and why dost thou embrace me thus, even on the
battlefield itself? Surely ’tis unmanly of thee. Oh, I do hate thee,
Scipio! Release me, I beg of thee, and insult me not in public.”
With a look of repulsion on her beautiful pale face, she turned from
him, and would have withdrawn herself from his embrace, but was
too weak.
“Nay, nay, dear Elissa, mistrust me not,” rejoined Scipio, with the
air not of a conqueror, but of a very suppliant. “Thou dost wrong me.
’Twas but to save thy life that Caius and I alone, both thy friends,
have thus removed thine armour; and even now the joy of seeing
thee living far outweighs the grief caused by the bitterness of thy
words.”
“And so ye are my friends, are ye? Pretty friends, in sooth, to war
upon a woman and murder all my people!” answered Elissa, arguing,
like a woman, unreasonably, and forgetting that all the bloodshed
could have been spared and no lives lost had she but accepted the
offered terms of amnesty.
“Is that, too, a friend?” she asked, pointing with her unwounded
arm to a Roman warrior who, sorely smitten, was lying near, in whom
she recognised Marcus Primus. “Art thou my friend, oh Marcus?
Thou who hast eaten the bread of our hospitality here, but who as a
return did by treachery escape, and lead back an army to slay those
who succoured thee when thou wast wounded and in distress. And
is thy paramour, the Princess Cœcilia, likewise my friend? Oh! I see
it all now, thy pretended suicide arranged with her, and that ’twas she
who taught thee the secret of the lowering of the waters of the
lagoon. If this be friendship, a curse I say upon all such friends! and
may the dreadful and undying curse of all the almighty gods fall upon
both thee and thine accomplice.”
“Nay, curse me not, and I so near death, Elissa,” the young man
replied feebly; and the tears came to his eyes, partly from pain at
witnessing the bitter distress of this noble young woman, partly from
excessive weakness. “I do most deeply grieve for thy sorrow, believe
me, and I have but fought for my country as thou hast so nobly done
for thine. I pray thee, then, remove thine awful curse from the head
of a dying man, or I may not die in peace. Remove that curse, I pray
thee once more, then may we meet as brethren in a country where is
no war, when it shall be thine own time to cross the Styx.”
“I pray the great god Melcareth that that time be now near at hand,
oh, Marcus. In sooth, I feel anew so weak that we may perhaps
cross the Styx together; and since ’twould be strange and sad to
commence a new existence together as enemies, I will even revoke
my curse upon thee, yet not my curse from the head of Cœcilia.”
“Who hath never done thee any wrong, and is most loyal,” replied
the dying Marcus Primus. “I thank thee much, Elissa,” he added, with
a gasp. And then, with this noble lie upon his lips, uttered merely to
save the woman who had loved and befriended him, he gave a long,
sad sigh, and fell back dead.
“Scipio,” quoth Elissa, now very faintly, for she had lost much
blood, “I think I likewise am dying, and ’tis not meet that I should die
thus in the arms of an enemy of my country; therefore, if thou hast
any nobility of soul, thou wilt release me and send for Cleandra, one
of my women. Know this, I do not, nay, I cannot hate thee as I ought.
I might even have loved thee had things been otherwise, for thou art
most wondrous kind; but if thou dost love me, then let me not, for my
country’s sake, for my lover Maharbal’s sake, for mine own honour’s
sake, die thus in thine arms; but yet I thank thee and Lælius
likewise.”
Her last words were scarcely audible.
Scipio, himself nearly as pale as Elissa, pressed one reverent kiss
upon her lips, and murmured:
“I obey thy behest, Elissa.” Then he laid her gently down, and,
leaving Lælius with her, dashed within the palace for the first time,
wandering vaguely about, and calling for the woman named
Cleandra, who was soon brought out to him from among the
captives.
Leading her to Elissa, he gave his fair foe into Cleandra’s charge.
Elissa, now speechless with pain and weakness, yet still sensible,
gave him one look of gratitude, and then closed her eyes. And thus,
with instructions that she should be borne gently into her own
apartments, Scipio left her to see to his troops and to the thousands
of prisoners. The whole scene had not taken more than some ten
minutes.
There was plenty for Scipio to do, for now were all his generals
and captains attending upon him from all parts of the town to ask for
instructions on every subject. Among other points to be decided two
men were brought before him, each a claimant for the mural crown in
gold, promised to the first man who had escaladed the wall.
One of them was Quintus Trebellius, a centurion of the fourth
legion; the other was Sextus Digitius, a seaman; and a hot contest
was on foot between the soldiers of the land forces, and the seamen
and marines of the fleet, who espoused their rival claims with great
warmth.
Although Scipio appointed three commissioners to decide the
case, the contest between the soldiers and the sailors became so
hot that Caius Lælius soon pointed out to his friend and leader that
unless the matter were decided so as to please both parties, a
conflict would probably break out.
Thereupon Scipio showed his tact. Calling both Trebellius and
Digitius before him, he complimented each of them warmly, said he
was convinced that they had both mounted the wall at the same
time, and granted them both mural crowns for valour. To his friend
Lælius he also awarded a mural crown, and gave him besides thirty
head of oxen. Many other rewards he gave to those who had
distinguished themselves. In this way he preserved peace in his
camp, and all were satisfied and pleased with their general.
There was another incident which occurred on the following day,
which did much to enhance young Scipio’s reputation with his troops,
and his popularity with the Iberians, hitherto the allies of Carthage.
From the period when, after the morning repast, Elissa had sallied
forth to repel the stormers, the lovely young girl Idalia had been
missing from the palace. In the confusion of the assault and
subsequent events, none of the frightened women in the palace had
observed her absence, but, once the storm completed and the
Romans masters of the place, the women, who were now prisoners,
noticed that she was no longer among their number.
When on the following morning Scipio was superintending the
division of the enormous plunder among the legions, a small knot of
soldiers were seen approaching him, leading a young girl, who was
thickly veiled from head to foot. Their leader, coming forward to
Scipio, addressed him as follows:
“Oh, Scipio, well is it known throughout the army that thou dost
give great rewards and mete out justice to others, and yet, save the
reward of honour, nought hast thou retained for thine own self. Now
we, some of thy followers, seeing that thou art a young man, and
known from thy youth to love the fair, have discovered a gift which
we would offer unto thee in the shape of a young virgin, who is fit for
a king. For we have thought that such a gift would be acceptable
unto thee. We took the girl yesterday, and she hath been religiously
respected and carefully veiled, lest any of the tribunes or prefects,
seeing her, should have become enamoured of her beauty and taken
her away from us, who would save her for thee.”
The young general’s curiosity was at once excited. Smiling, he
said:
“I thank ye, my men, for your kind thought of your general; but
come, let us see this paragon of beauty. Unveil her.”
When the thick covering which alone concealed the face and form
of the maiden was removed, Scipio and all the officers near him
were simply astounded at the excessive loveliness of the charming
Idalia, who, her eyes suffused with tears and her face and bosom
with burning blushes, stood revealed, trembling before him.
Scipio was moved to pity for her wretched condition.
“By Hymen and Venus! thou hast spoken the truth, my men, and I
do greatly thank ye for this beautiful present. For never save in one
woman alone,”—he was thinking of Elissa—“have I seen aught so
lovely in the human form. My men, since ye have made me the gift, I
shall retain it to do as I choose with, and ye shall be all suitably
rewarded. And were I other than the general commanding the forces,
there is no present which could have been so acceptable. But seeing
that I am the general, it becomes me to use a little self-denial in this
matter. Therefore, lest from gazing too long upon such charms I
should begin to think that I am but a private person who can do as
he chooseth in such a matter, give me that veil.”
Taking the heavy veil he went up to the trembling girl, and
reassuring her kindly, covered her shoulders and limbs with it. At the
same time he gave her a fraternal kiss on the cheek, bidding her not
to fear, for he would be as a brother to her. But Idalia, broken down
with all the suffering and shame that she had undergone, and moved
by Scipio’s unexpected kindness, threw herself down and, clasping
his knees, would have kissed his feet. This he would by no means
allow, but raising her gently, inquired into her condition and the
circumstances attending her capture.
Then the soldiers told him that on the previous day, when the
order had been given for a space to slay every living thing that they
met, but not to begin to plunder until further orders, they had pursued
some fugitives into the porch of a doorway and killed them. Glancing
within a room beyond, they had seen a wounded Iberian chieftain,
and were about to kill him also, but that this maiden had flung her
body full length upon the Iberian, and clung to him so tightly that they
had been unable to slay him without wounding or perhaps slaying
her also. Then had their leader, the same who now had addressed
Scipio, reminded the men that the order was to kill all whom they
should meet in the streets, but that there was no order to slay those
in the houses, and as the young man himself also offered, in the
Latin tongue, a large ransom for his life, they had spared them both.
“In that ye have done well,” said Scipio; “and thy reward shall be
the greater,” continued he to the leader, “for that thou didst exactly
obey and follow out mine orders to the letter. For mine order was
indeed but to slay all living things ye met in the street; there was no
order to slay those in the houses. Now tell the Quæstors, whose duty
it is to take the money for such as are ransomed, where this young
man lies, and when they have rewarded you as I shall direct, ye can
depart, leaving the maiden here.”
So the soldiers all received large sums of money, and their leader
in addition had a magnificent golden ring presented to him, and they
departed rejoicing.
Scipio took Idalia with him to the palace, where Elissa was
delighted to see her once more. Scipio, then sending for Allucius,
prince of the Celtiberians, whose life had been twice saved by his
beautiful lover, first by dragging him when wounded into a house,
and then by covering his body with her own, caused him to be
brought before him in a litter. The ransom for his life was paid by the
father and mother of the maiden, the former being an Iberian noble
and the latter a Carthaginian lady.
When they were all assembled together before him, Scipio handed
over the ransom that had been paid for his life to Allucius as a
wedding portion, and ordered the father and mother to have the
wedding celebrated at once between him and the lovely Idalia,
without even waiting for his recovery from his wound.
The fame of this action soon spread throughout all Spain and
inclined the Iberians greatly to Scipio; but whether he would have
acted thus had it not been for his own great love for Elissa, no man
can tell.
The next few days were passed by the young Roman general in
making arrangements about his prisoners, of whom he disposed in
various ways, generally acting with great leniency to the Iberians,
and pressing all the surviving soldiers of other nationalities into his
own navy, thus largely augmenting his fleet. Of such men and
women as were made slaves he made a suitable disposition,
rewarding his generals and tribunes with the best of each. And thus
Cleandra was presented to Caius Lælius and the other women in the
palace were disposed of according to rank and beauty to the higher
nobles in the army. Of Elissa there was no word said, but it was
understood as a matter of course that she belonged to Scipio
himself. Yet was she treated with all honour. As Lælius remained in
the palace with Scipio, she still had her friend Cleandra to minister to
her; and Scipio himself, much as he longed to see her face again,
refrained entirely from intruding upon her privacy.
One woman there was however in the palace for whom neither the
general nor the admiral felt any goodwill, and this was the Princess
Cœcilia. Young Marcus Primus being dead, there was now none to
speak for her, and both Scipio and Lælius resented the knowledge of
the fact that never could the battlements have been so easily
surmounted or the city captured by the passing of the lagoon had it
not been for the treachery of that woman towards her niece Elissa.
Therefore, at the instance of Lælius, his original proposition, made
in jest at the camp of Tarraco, was carried out. It was resolved that
she should be married to the chief boatswain of the flag-ship. This
man’s name was Valerius, and he was a most truculent-looking
ruffian, of great size. He was much renowned for his bloodthirstiness
in action, but was a good sailor, and extremely feared by all in
authority under him.
To him then was the Princess Cœcilia offered as his wife by his
chief, Caius Lælius. He was given to understand that a lady of such
high rank was offered to him as a reward for his bravery in the
storming of the town. When, moreover, he was promised a
considerable dowry of her own money, as well as her person, he was
both flattered and delighted. He could not speak any language save
Latin, and of that tongue his intended bride did not understand a
word. For the diversion of the nobles in the palace, the marriage
was, despite the pitiable lamentations of the unwilling bride,
celebrated one day with much festivity and license, for much wine
was purposely given to the seamen at the feast that the traitress
might be made to feel her punishment the more. And when night fell
the now drunken boatswain carried off his bride, who had been
forced to attire herself with great splendour, from the palace, where
she had lived for so many years, to a mean fisherman’s cottage by
the port. She had been given to Valerius for the purpose
intentionally, that she might be able to reflect therein at leisure upon
the vicissitudes of life, of which her treachery to her niece had been
the direct cause, and of her own repeated acts of folly that had led to
the treachery. Elissa, who was aware of what was about to take
place, had, although the princess had begged her in their sole
interview to intercede on her behalf, refused absolutely, with the
utmost scorn and loathing to do so. She had, moreover, reproached
her bitterly with being the cause of all the bloodshed and of the loss
of the town and of the enslavement of them all. In conclusion, she
informed Cœcilia that, should she open her lips to mention her name
to Scipio, it would not be to ask for a reconsideration of the matter of
her marriage, but only to beg that he would inflict some far more
terrible punishment.
This was the last time that Elissa and Cœcilia ever met, and from
this time forth the princess disappears entirely from this history, for
her subsequent fate is unknown. One thing only is certain, that when
Caius Lælius sometime later sailed for Italy, the boatswain did not
take his wife with him. So it is probable that he had either drowned
her in the gulf, wrung her neck, or sold her into slavery.
 CHAPTER VII.
A RENUNCIATION.

A few days after the marriage of the boatswain to the unworthy

Princess Cœcilia, Elissa was able to rise from her couch and attire
herself with Cleandra’s aid. Very miserable and down-hearted was
she when, looking forth from that same window whence some years
before she had seen the fleet of the treacherous Carthaginian
Adherbal, she could now see nought but warships flying the Roman
standard. Looking towards the battlements, she saw now, instead of
Carthaginians, only Roman soldiers pacing up and down in their
coats of mail, or resting upon their long pikes and looking out over
the walls. Upon gazing from another window first towards the citadel
and then to the hill of Æsculapius, she saw flying from both, instead
of the white horse on the purple ground, the Roman eagle proudly
displayed.
She groaned aloud and beat her breast, then covering her eyes,
burst into a flood of weeping.
“Oh, Cleandra!” she cried, “it is then indeed a reality, a sad reality!
During my great sickness I have thought almost that ’twas but a bad
dream. But those Roman ensigns, those Roman soldiers
everywhere, are, alas! too convincing. Oh, why are the gods so
cruel? Why was I ever born to experience such bitter and great
humiliation? Oh, hast thou no poison concealed with which I may
end my miserable existence forthwith, rather than live another day to
witness my country’s shame and endure mine own dishonour? Give
me but a dagger or a sword that I may slay myself, for live I cannot! I
long for instant death.”
“Nonsense, dear Elissa,” said Cleandra. “To talk of death at thine
age is but folly. Thou must live, if only in the hopes that the day may
come when thou shalt see fortune’s wheel spin back the other way
again. Thou must live if only for the sake of thy country, to whom
thou mayst bring some succour living, but to whom thou wilt be
assuredly most useless dead. Besides, I have no poison to give