 | |
| That makes career management choices even more important. How much is your career worth? Imagine a person earning $100,000 per year, who's likely to get a 5% raise at Christmas. Think of her career as an asset, an investment that throws off $100,000 in dividends, plus enough capital appreciation that it pays $105,000 next year. Tomorrow, on her way to a meeting in Samarra, she is hit by the proverbial truck. She leaves her heirs an asset worth the same as her career. What's the number? Well, the three-month T-bill rate is 5.1%, so to get $100,000 she'd need $1.96 million in T-bills. Her career is worth more. To get that 5% raise, next year, she would need T-bills worth $98,000 more, about $2.06 million. This year's total return -- cash and dividends plus capital gains -- isn't $100,000, but $198,000. Protecting the equity in a career is a lot more important than protecting equity in a house. It's also a lot harder to protect. My career is worth 20 times my salary, and I want to protect it." | |
© 2001-2008 Wilson Smith Associates
Hosted and Managed by Lyon Technical Services, LLC
