Mortotheque your 401 (K) – Bloomberg

What percentage of her net assets should a 30-year-old specialist have on the stock exchange? I will not give you investment advice and there will be a wide range of plausible answers. “Zero, put everything in Bitcoin” is on the list. A popular rule of thumb would say 70% in shares with the other 30% of bonds and cash. However, there is a good theoretical case that the correct answer is really 200%or 500%: Most of the economic assets of a young specialist is the current value of their future employment income, and borrowing money to buy more shares is a good way to diversify a risky assets. Also buy many 30-year-old professionals Houses For significantly more than 200% of their net assets, it could be useful diversification again to bring 200% of their net assets into the stock exchange.

But it is not easy to bring 200% of your net assets into the stock exchange, because where do you get the money from? A mortgage on a house is a fairly standard product in the USA, but it is not a mortgage to an old -age provision account. Bloomberg's Suzanne Woolley reports on someone who tries to change this: