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Think of “Human Capital” Before You Invest

Most financial planners will tell you that the usual advice for younger adults' retirement planning is to invest in the higher risk growth category, like stock mutual funds, and to sock away as much as you can every month.  But our next guest says these investments might not be appropriate at all for a young person and that even putting money into a retirement plan may not be the best idea, either.  He says it's all about the cost of “human capital”...something everyone should consider before they invest.

Mike Switzer interviews Eddie Kramer, a certified financial planner with Abacus Planning Group in Columbia, SC.

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After almost 20 years, Mike Switzer retired from Wells Fargo Securities in 2001 as Senior Vice President/Investment Officer and Certified Portfolio Manager. In 1999, he and his wife, Maggie, purchased and operated for eight years the Baskin Robbins ice cream store on Forest Drive in Columbia. They grew the store from a bottom-tier operation in the Baskin Robbins franchise system to one in the top 5% nationwide within three years, tripling sales along the way. While operating the ice cream store, Mike and Maggie received patents for a portable ice cream sink and fold-down sneezeguard they invented and in 2002 started Magnolia Carts, an ice cream cart manufacturing company, which they sold in 2013.