General investing advice and information with a focus towards using leverage.
## Basics
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People use leverage all of the time for home loans, and it is not unheard of to use a 80% loan to value ratio for a mortgage, or a leverage ratio of 5. For a $500k home, you might put up $100k cash and take a $400k loan. You would likely do this at a reasonable interest rate, and your hope is the value of the home goes up faster than your interest charges. Your home value could fall, leaving you with a mortgage that is underwater, i.e. you owe more than the home is actually worth. All of this can apply to investing as well.
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Books:
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The following book provides a good argument for using leverage. The general idea is use high leverage when young, and reduce that leverage towards retirement:
- [Lifecycle Investing: A New, Safe, and Audacious Way to Improve the Performance of Your Retirement Portfolio](https://www.amazon.com/dp/B003N44KOM/)