On the one hand, as we enter the earning stage of our lives, our human capital is often at its highest point. On the other hand, our financial wealth is usually at a low point. This is the time when we began to convert our human capital into financial capital by earning wages and saving some of these wages. Thus, we call this stage of our lives the “accumulation stage.” As our lives progress, we gradually use up the earning power of our human capital, but ideally, we are continually saving some of these earnings and investing them in the financial markets. As our savings continue and.
