Human Capital is More Valuable to Economies Than Physical Assets

Human capital is more than twice as valuable to the global economy as physical capital, but business leaders often overestimate the value of tangible forms of capital and underestimate the importance of employees to their company’s performance, a study commissioned by executive search firm Korn Ferry has concluded. The report, “The trillion-dollar difference,” outlines the findings of a survey of more than 800 global business leaders that was conducted in August and September 2016, as well as of a global economic analysis that was conducted by the Centre for Economics and Business Research. The report was released on December 15, 2016. To quantify the relative value of human and physical capital, researchers developed a lifetime income calculation for measuring human capital that encompasses the ability of people to perform labor and add productive value over time. Physical capital was measured by the value of tangible means of production (such as …

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Mandatory Retirement: What You Need to Know

Retirement means different things to different people. For some it might mean a complete release from any work responsibilities or requirements and the start of a life of leisure. For others it may be more of a side-step into work they’ve always wanted to do, or the chance to start a business. But retirement comes when the worker wants to stop working, with exceptions made for pilots, air traffic controllers and, in some states, judges. Other employees aren’t told when to stop. “All U.S. employers with at least 20 employees are prohibited from taking adverse employment action based on age against most employees 40 years older or older,” says labor and employment lawyer Scott Horton. “In many states, age discrimination laws cover even more employers and employees. These laws essentially make it illegal to have a mandatory retirement age, even if someone could make a good business case.” Here’s what …

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Don’t Miss These Year-End Retirement-Planning Deadlines

It’s not too late to ensure that your retirement planning is on track to maximize tax savings before the end of 2017. Understanding end-of-year deadlines can help you maximize your tax savings as well as prepare for another year of saving. “Tax planning should really start in January, not in November or December,” says Randall Luebke, a financial planner at Lifetime Paradigm. “That said, if you do wait, be sure to do everything you can to reduce the taxes you pay.” Now is the time to accelerate your tax-deductible expenses and put off receiving taxable income. Here are some tips. Consider Roth Accounts If you’ve been thinking about converting a traditional IRA to a Roth IRA, it’s a good time to make a decision and act because you must file forms by the end of the year. With Dec. 31 falling on a Sunday in 2017, experts recommend aiming for …

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