Matt Levine’s Money Stuff: Mortgage Your 401(k)

Levered 401(k)

What percentage of her net worth should a 30-year-old professional have in the stock market? I am not going to give you investment advice, and there is a wide range of plausible answers. “Zero, put it all in Bitcoin” is I guess on the list. A popular rule of thumb would say 70% in stocks, with the other 30% in bonds and cash. There is, however, a good theoretical case that the right answer is really 200%, or 500%: Most of a young professional’s economic wealth is the present value of her future employment income, and borrowing money to buy ...