Tuesday, June 17, 2008

Are you a stock or a bond? - The Wealthy Boomer

Interesting angle on personal finance.

Are you a stock or a bond? - The Wealthy Boomer:
"...Your human capital is "bond-like" in nature if you're a salaried employee with a Defined Benefit pension plan.... On the other hand, the human capital of an entrepreneur or investment banker is more like a stock.the implications for personal finances are clear. If you're a 'bond' you might want to balance your human capital by adding more stocks to your growing financial capital. If on the other hand you're a 'stock,' you might consider adding more bonds to your financial capital to offset the risk you take in your day to day work.

Many of us are not 100% a stock or 100% a bond; we are a blend"

1 comment:

Anonymous said...

Similar to one of the articles in the CFA Newsletter you blogged about a couple of months ago. Certainly an interesting read.