Why Your Social Inventory Is Just as Important as Your Financial Inventory
Many retirement planners urge you to spend the time to take inventory of your financial resources for retirement. Another important part of your inventory is what I like to refer to as your "human capital." This is separate from the way that CBS MoneyWatch typically uses the term to describe your skills and earnings potential. The human capital I'm referring to comprises your social resources. While it's not financial in nature, it most certainly affects just how comfortable your rest-of-life will be, and it might be necessary for your financial well-being.
A Checklist of Your Human Capital Inventory
- How many friends or relatives can you confide in and discuss important life decisions with?
- How many friends or relatives live nearby and would come to your aid in an emergency?
- Would any of these friends or relatives be able to take care of you if you needed long-term care?
- Do you have friends or relatives with whom you can share resources, such as a car, appliances, tools, etc.?
- Are there friends or relatives with whom you could share housing? Could you move in with your children?
- With how many friends and relatives do you participate in regular activities that give you enjoyment and meaning in life? Are you "diversified," meaning that you have several good friends in addition to your spouse or partner?
- What social institutions are nearby that can help you and provide social contacts? Include such associations as churches, social organizations, clubs and the like.
- What state and local government organizations or nonprofits are available to provide potentially necessary services?
What else would you include in your human capital inventory?
Image from iStockphoto contributor digitalskillet
