Welcome to the Academy of Financial Service’s 2019 Annual Meeting being held in Minneapolis, Minnesota in conjunction with FPA’s Annual Conference 2019. This is the full agenda for AFS. For details on FPA items, visit their Full Schedule. Please report any errors to support@academyfinancial.org.
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Wednesday, October 16 • 10:45am - 11:45am
E1b Career and Education Choice as Central Elements of Long-Term Financial Planning

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Career and education choice play a central role in individual’s long-term financial planning. In this study, we focus on answering the question of whether higher education is still financially valuable. We define an individual’s wealth in terms of human capital (expressed as the present value of future earnings) in the function of overall wealth. We argue that human capital accounts for the majority of an individual’s wealth portfolio in most cases. By including human capital in the traditional portfolio choice framework, we show that the choice of career and education level has a significant effect on the Sharpe ratio of an individual’s overall wealth portfolio. We conclude by finding the present values of future earnings streams for individuals of various education levels from a number of occupations. The calculations are meant to provide some guidance on both career and education level choices.

Author(s): Inga Timmerman, Nikanor Volkov


Inga Timmerman

Associate Professor, California State University, Northridge

Wednesday October 16, 2019 10:45am - 11:45am CDT
201 A

Attendees (1)