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

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

What's the first thing advisers should do when they get home from a conference?

After attending a financial services conference, advisers can be overwhelmed by options, choices and tools. What's the first thing they should do when they get back to their office?

Latest news & opinion

Is Fidelity competing with retirement plan advisers?

As the Boston-based mutual fund giant expands the products and services it brings to the retirement market, some financial advisers say the firm is encroaching on their turf.

Gun violence hits investment strategies, sparks political debates with advisers

Screening out weapons companies has limited downside.

Whistleblower said to collect $30 million in JPMorgan case

The bank did not properly disclose that it was steering asset-management customers into investments that would be profitable for JPMorgan Chase.

Social Security underpaid 82% of dually entitled widows and widowers

Agency failed to tell survivors that they could switch to a higher retirement benefit later.

If Finra eases firm oversight of outside business activities, broker-dealers could lose revenue

Brokerage firms would no longer be able to charge reps for supervising nonaffiliated RIAs.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print