Importance of Human Capital for your Investments
We regularly use the idea of Human Capital to help our clients establish and monitor their investments, pensions and general financial position. In a recent article published in ‘The Professional’ magazine, I set out the theory of Human Capital and how to apply it to your everyday finances. I put forward the notion that we often look at our financial position in isolation, and that we should really consider our future earnings (Human Capital) together with our investments and pensions (Financial Capital) and make sure they are compatible. This includes considering your employment stability when looking at the risk in your investment portfolio. For example, owners of filling stations should not really be invested in oil companies!
The ‘Professional’ magazine is published quarterly and distributed to over 8,000 individuals in the finance and banking sector.