Download PDF Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance

Free download. Book file PDF easily for everyone and every device. You can download and read online Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance file PDF Book only if you are registered here. And also you can download or read online all Book PDF file that related with Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance book. Happy reading Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance Bookeveryone. Download file Free Book PDF Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance at Complete PDF Library. This Book have some digital formats such us :paperbook, ebook, kindle, epub, fb2 and another formats. Here is The CompletePDF Book Library. It's free to register here to get Book file PDF Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance Pocket Guide.

Ibbotson Moshe A.

  • Valuation-Driven Portfolios for Advisors!
  • At Least You Still Have Your Human Capital - AssetBuilder Knowledge Center.
  • If I were a rich man…!
  • Human Capital and Your Portfolio.
  • Duplicate citations.
  • Battle at Bull Run: A History of the First Major Campaign of the Civil War (Davis).

Functional cookies , which are necessary for basic site functionality like keeping you logged in, are always enabled. Allow analytics tracking. Analytics help us understand how the site is used, and which pages are the most popular.

Read the Privacy Policy to learn how this information is used. In determining asset allocation, individuals must consider more than the risk—return trade-off of financial assets.

Shop with confidence

They must take into account human capital and mortality risk in the earlier life-cycle stages and longevity risk in the later life-cycle stages. The proposed life-cycle model then addresses the transition from the accumulation to the saving phases—in particular, the role if any of immediate payout annuities.

He is founder and former chairman of Ibbotson Associates. Professor Ibbotson conducts research on a broad range of financial topics, including popularity, liquidity, investment returns, mutual funds, international markets, portfolio management, and valuation.

Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance

He has written numerous books and articles, including Stocks, Bonds, Bills, and Inflation coauthored by Rex Sinquefield , which is updated annually and serves as a standard reference for information and capital market returns. He is a regular contributor to and an editorial board member of both trade and academic journals.

  • Lifetime Financial Advice: Human Capital, Asset Allocation.
  • Our Latest Insights!
  • Latest News.
  • Designing Safer Chemicals. Green Chemistry for Pollution Prevention.

Professor Ibbotson serves on numerous boards and frequently speaks at universities, conferences, and other forums. We tend to regard wealth as financial assets, large houses, and nice cars accumulated through a life of hard work. Yet that is to view wealth in narrow terms; on the very day we are born we are wealthy in terms of our human capital , or in other words, the present value of all the future earnings that we will generate over our working lives. This needs to be reflected in how we invest during the accumulation phase of investing.

If I were a rich man

As younger people have a long time to go before they will need the money, the advice they receive is often that excess earnings should be invested predominantly in equities. Take for example a university professor and a fin-tech entrepreneur; the former has stable income, linked to inflation and job security; the latter has little income stability and, most likely, a high correlation to the equity markets.

So, if they are both 40 years old and have the same level of financial capital, should they invest in the same way? Intuitively, the answer is no. Human capital should be treated like any other asset class; it has its own risk and return properties and its own correlation with other financial asset classes.

Yale School of Management

Those with more bond-like human capital could well take on more risk and those with more equity-like human capital should, perhaps, take on less risk with their financial capital. Ironically, it is also possible that those who choose steady, stable jobs may have lower tolerance to losses than the entrepreneur, and vice versa. One can see the risk of this scenario. Additionally, two partners may also have different levels of risk in their human capital. Imagine a professor married to an entrepreneur; together they form a balanced portfolio between bonds and equities and their investable portfolio of financial capital should reflect this.

Cash-flow modelling can help those in the accumulation phase of investing to understand the financial impact of changes to their human capital. Owning sufficient life cover to protect the outstanding human capital should be an important part of the discussion.