When you think of your net worth, what investments typically come to mind? If you’re like most investors, you might include stocks, bonds, real estate, and cash. Those investments, also known as financial capital, each play a role in your portfolio, but I believe that you’re worth more.
For a true account of your total economic wealth, you should include your “human capital”, in addition to your financial capital. Human capital is the present value of expected future labor income; in other words, it is your earnings potential.
If you knew the exact value of your human capital and its risk profile, how would that change your investment strategy? Would you invest more conservatively or more aggressively? With the help of pioneering research that I have access to through my affiliation with NYLIFE Securities LLC, we can explore how your career affects your financial portfolio, take steps to protect your human capital, and make more informed investment decisions to manage your wealth throughout your lifetime.
I would like to sit down with you to review this concept further, to go over some questions that will help determine whether your human capital is properly protected, and to determine how to incorporate your human capital into your investment strategy
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