Career = Reserve funds

The career asset working capital fund is a reserve fund separate from a client's emergency cash reserves

May 4, 2014 @ 12:01 am

By Mary Beth Franklin

human capital, career, assets
+ Zoom

Michael Haubrich explains his career asset management model in detail in his upcoming self-published book, “Your Career Asset: Developing, Managing and Optimizing Your Greatest Financial Advantage.”

Central to his concept is the career asset working capital fund. It is a reserve fund separate from a client's emergency cash reserves.

That doesn't mean the funds cannot be pooled together, but the amount needs to be considered separately, he said. The amount varies based on “career velocity” — the number of job changes — and “career volatility” — the variance of pay over time.

Working capital for the career asset has three parts — funding skill set maintenance and development (lifelong learning), funding job changes and funding career sabbaticals necessary for personal transitions, such as the birth of a child or career rehabilitation. The first item should be reflected as an expense on an annual income statement and the other two goals should be factored into longer-term reserve funds.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Why are most advisers stuck in the trenches?

What are top advisers doing to stand out? Scott Conroy of Carson Group offers some strategies for success.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

LPL retains $570 million with super-OSJ deal

Kansas-based nVision Wealth will come under supervision of Chicago-based IHT Wealth Management.

How does your advisory firm stack up?

Comparing a firm's pay to the competition can point out vast flaws.

10 signs your client is cheating on you

Sure signs that clients may be on the way out the door.

Morgan Stanley sees slower fee-based asset flows on fiduciary rule delay

Flows to advisory accounts, while still higher than the start of 2016, dropped off more than 20% from Q2 and were the lowest in a year.

How adviser salaries stack up to other jobs

Median compensation hovers just under $100,000 on the low end and reaches nearly $300,000 for bosses.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print