Episode #2: Correlation, Human Capital, and Your Portfolio Red Haven Advisors

Does a significant portion of your net worth include financial assets tied to the same company or industry where you or your spouse work? If so, then you won’t want to miss this episode of the Red Haven Advisors podcast.

In this episode of the Red Haven Advisors podcast we discuss how diversifying your financial capital and your human capital could strengthen your overall investment portfolio.Red Haven Advisors is based in Seattle and the local economy has been booming. The area has been blessed with not just strong job growth but strong job growth for “good jobs”. Amazon, Microsoft, Boeing, Starbucks, T-Mobile, Costco, and many other employers have been adding headcount in recent years to support their growing their businesses.

The top twenty publicly traded Washington-based (including Boeing) companies have paid more than $16B in stock-based compensation in the past twelve months. Further, they have paid roughly $70B in stock-based compensation over the past ten fiscal years.

So, even for employees that received only a portion of that $70B of stock-based compensation, now may be the time to start thinking about diversifying it.

Understanding the portfolio risk stemming from correlation between your human capital and your financial capital is always important. But, if a significant portion of your net worth includes financial assets tied to the same company or industry where you or your spouse work, then now is the time to start researching your options.

Contact us today at info@redhavenadvisors.com to learn more.

Thank you for listening.