Preserving the Wealth

Free CFA Level III: Private Wealth lesson in Preserving the Wealth. 23 min read, ~3,501 words.

Human capital is the present value of future labor earnings, discounted at a rate reflecting wage risk. It dominates net worth early and decays toward zero at retirement, shifting financial capital from equity-heavy to bond-heavy. The five human-capital risks are mortality, longevity, disability, earnings volatility, and concentration, each paired with...