Human Capital

Human capital is a key concept in life-cycle investing. Human capital is simply the value of a person's labor income or earnings over the course of their lifetime. Technically, human capital is the present value of future earnings. For example, assume a person is 40 years old and plans to work for an annual salary of $75,000 for the next 25 years. Using a discount rate of 3.5%, the value of this person's human capital is $1,236,113.

What is an Annuity

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Annuity Digest Buying Guide: What is an Annuity

An annuity is a financial product that converts accumulated savings into guaranteed income.  In a very basic sense, annuities:

  • Turn a sum of money into a series of payments or a “stream of income.” 
  • Guarantee the stream of income over a specific timeframe.


Variable Annuities, Financial Planning and Human Capital

Although mentioned previously , it is worth noting again that Moshe Milevsky is the most active, creative and interesting voice in the asset decumulation industry. Moshe produces copious amounts of outstanding materials that shed light on the world of annuities for both professional and consumer audiences. A recent interview in The Journal of Financial Planning is highly recommended. Moshe is working on a soon to be released book on lifecycle investing . In the Journal of Financial Planning...

NAPFA Provides Consumers with Quality Control while Maintaining Flexibility for Financial Advisors

NAPFA is the National Association of Personal Financial Advisors.

NAPFA membership consists of financial advisors who provide comprehensive...


Human Capital is the Best Inflation Hedge

Warren Buffett commented on the likelihood of future inflation during the most recent...

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Listen to Zvi Bodie When it Comes to Retirement Planning

Zvi Bodie is absolutely one of the most honest and refreshing voices in finance and economics.  Professor Bodie also happens to be an advocate of life-cycle investing.

A recent interview with Bodie is highly recommended and available in U.S. News & World Report.

Highlights from the interview include:

  • Human
  • ...