"bondlike" HC and financial wealth

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bayofpigs

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I can’t wrap my head around why an investor would trend more towards a conservative portfolio when one has a large asset base with bondlike human capital? Doesn’t the bondlike HC already represent an allocation towards less risky investments which will allow you to increase your financial wealth towards more riskier investments?
Can someone provide their insights?
 
I understand it now, however, most of the comment in the links talk about how wealth changes from an inheritance when the books speaks about “initial” wealth
 
and also the assumption in the book assumes an investor can invest in either a risk-free investment or a risky asset (bonds/stock). The links provided don’t mention the risk free asset and just discuss re-balancing the portfolio between bonds/stock to achieve more conservative diversification. How does the risk-free return factor in? Or do I just assume the bonds I’m going to be investing in will be characterised similar to my low volatility and low correlation bondlike HC and therefore in effect, rebalancing my portfolio to my target?
 
I think the book is just giving examples at the extremes. I wouldn’t think anyones HC is 100% risk free or 100% risky. The examples just depict the extremes to show how diversification would look in these cases.
Most peoples HC would lie somewhere in the middle. It’s not much of an example to assume that HC is 60% risky so if total wealth is to be 40% bonds/ 60% stock then FC should be allocated as 40% bonds 60% stock.
Without going to the extremes you have to start using percentages of HC to Total Wealth and FC to Total wealth to find the right diversification mix in your FC.
I don’t know if all that makes sense, but the basic premise is that I think they presented the examples as risk free or entirely risky to make their examples easier to see.
 
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