- [Lifecycle Investing - Leveraging when young](https://www.bogleheads.org/forum/viewtopic.php?t=274390)
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### Targets
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When investing the extra cash that comes from leverage, it should be towards your desired asset allocation. That allocation should be a diversified portfolio (e.g. the Bogleheads portfolio). For example, if your current allocation is deficient in US large cap, you can use leverage to increase that particular allocation.
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### Definition
We'll use the following for the definition of leverage ratio: