The Metamorphosis of CapitalTM Principle
Metamorphosis: a profound change in form from one state to the next in life history of an organism, as from the caterpillar to the pupa and from the pupa to the adult butterfly.
From Human Capital to Financial Capital
Financial Capital: Increases with age.
Human Capital: Decreases with age.
Dent's variation on Modigliani's Life Cycle Theory of Consumption
Both spending and income follow a curve based on age. In late retirement, spending exceeds income as savings are used.
Wealth Stages
Create
You'll need to work hard, insure health, control spending & manage debt. Focus on how income is saved.
Protect
You'll need to work smart, insure earned income, control effort & manage risk. Focus on how capital is invested.
Enjoy
You'll need to stop work, insure investment income, control lifestyle & manage health. Focus on how time is spent.
Share
You'll need to transfer capital, insure assets, control distribution & manage relationships. Focus on how life is remembered.
Thomas B. Russell
B.Sc., MBA, CFP, CLU, CH.F.C.
INSURANCE REPRESENTATIVE, FOUR POINTS FINANCIAL SOLUTIONS INC.
SENIOR FINANCIAL ADVISOR, MANULIFE SECURITIES INVESTMENT SERVICES INC.
204.235.0004 Ext 3
Tom@FourPointsFinancial.com
Thomas.Russell@ManulifeSecurities.ca