Young investors may not have a large asset base yet—but they could someday. That’s why it’s essential to focus less on financial capital and more on human capital when you work with this demographic. Why? Because:
- Human capital takes into account the present value of potentially increasing labor income.
- Young people typically have more human capital because of their longer earnings horizons.
- Valuing human capital has future implications for both young clients and your practice.
How to Address the Human Vs. Financial Capital Dynamic with Younger Investors can help you create the right investment strategies for clients with a heavy dose of human capital—which can lengthen and strengthen your business horizons as well.