Financial benefits of human capital
Economists define human capital as the actuarial present value of our earnings or wages over a lifetime. For most individual investors, human capital dwarfs financial capital. In the United States, for example, it represents 90 per cent of total assets. As an investor's career progresses, human capital transforms into financial capital through savings. Even for investors in their 50s, human capital still oftentimes represents at least half of total wealth.
Johnson, Robert, "Financial benefits of human capital" (2011). Faculty Publications. 86.