Human Capital in Wealth Planning

CFA Level III: Wealth Management and Institutional Investing · 3:51

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Lyrics

[Verse 1]
When you're young and just starting out
Your biggest asset isn't cash, no doubt
It's the decades of paychecks yet to come
Human capital, that's where wealth is from
High earning power means you can take more risk
Stock investments won't make your future skip

[Chorus]
Human capital, financial capital
They dance together through the years
When one goes up, adjust the other
Balance risk as time appears
H-C strong means F-C bold
H-C weak means F-C controlled
Human capital, financial capital
Your earning power steers

[Verse 2]
A doctor's income is stable and secure
So their portfolio can take risks for sure
But a salesman's pay goes up and down
Should keep their investments safe and sound
Your job stability affects your plan
Steady work means risks you can withstand

[Chorus]
Human capital, financial capital
They dance together through the years
When one goes up, adjust the other
Balance risk as time appears
H-C strong means F-C bold
H-C weak means F-C controlled
Human capital, financial capital
Your earning power steers

[Bridge]
Twenty-five years old, go heavy stocks
Forty years of paychecks, weather the shocks
Fifty-five years old, shift to bonds
Ten years left, preserve what you've spawned
As human capital fades away
Financial capital saves the day

[Verse 3]
Age-based allocation makes perfect sense
When earning power is intense, take the chance
But as retirement draws near
Protect what you hold dear
From human wealth to financial wealth
That's how you secure your future health

[Chorus]
Human capital, financial capital
They dance together through the years
When one goes up, adjust the other
Balance risk as time appears
H-C strong means F-C bold
H-C weak means F-C controlled
Human capital, financial capital
Your earning power steers

[Outro]
Your greatest asset walks with you each day
Plan your investments the human capital way

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