Mind Games to Preserve your Human Capital

(MoneyWatch)  Last week the boss-man laid down the idea that a rich retirement is more dependent on how well you manage your human capital, not your 401(k).

Our chosen fields obviously play a huge role in our earnings power. Having opted for a career in journalism, over say, law or finance, I consider myself expert in this matter. But as Eric's post points out, even if you have the gumption for a major career shift, there comes a certain point -- in the vicinity of your early 50s -- where a huge U-turn to retrain yourself in a new field probably isn't practical. The advice at that life juncture is to put your effort into saving like mad.

Sure, stuffing the retirement funds makes sense, but it seems to me that investing in your human capital as you age is also vitally important. Not in a radical career mulligan sort of way, but a more subtle nurturing to extend the shelf life of your valuable skills for as long as possible.
Fight your Personal Brain Drain The bad news is that our decision-making skills seem to peak at 53. That doesn't exactly jibe with the fact that many of us need (or want) to keep working well into our 60s, or the prospect that our extended longevity means many of us will still be in charge of important personal financial decisions well into our 80s and beyond. The bottom line is that the need to stay sharp -- both on the job and in managing our own finances -- has never been more acute.

Human Capital Preservation That has me thinking that playing some brain teasing mind games designed to sharpen my slowly deteriorating cognitive skills could be a good career (and personal) move. It sure has become a lucrative business venture. Capitalizing on our fears that we are losing our minds way too quickly (or maybe capitalizing on our adult desire to get our inner gamer on without looking too juvenile) Nintendo says that since its 2005 launch, the Brain Age and Brain Age 2 toy cognitive enhancement tool for its DS platform has sold more than 17 million units worldwide. ($19.95 for the software; $129-$169 for the DS game system if you can't mooch off of your kid's handheld.)

Or for $395 PositScience's Brain Fitness Program promises to improve my memory by 10+ years. (If my significant other brain wants to join in, the cost is $495 for two users; through the holidays there's a 25 percent discount.) One industry analyst told the New York Times he expects neurosoftware to grow to a $2 billion industry by 2015.
The frugal part of my brain is leaning toward the lower-entry cost of the Lumosity website. I can fork over $80 for a one-year subscription, or $14.95 a month to test drive its full suite of online mind games. (There's a free 7-day trial with limited access to certain features.) I am a bit of a sucker for the fact that a whole bunch of neuroscientists and cognitive psychologists -- primarily from Stanford and the University of California San Francisco -- are behind the games. They also seem to have mastered a bit of marketing too. After testing my cognitive skills in five main areas (attention, memory, speed, flexibility and problem solving) I'll be assigned a Brain Performance Index (BPI) rating to track my progress as I dive into the program, as well as compare myself to 2 million other Lumosity users. Nothing like a little competition to motivate.

Photo courtesy of Lumosity.com