Cman made a great point recently with regard to understanding and managing risk. I came across this report from Merrill Lynch on the topic of using credit to strategically manage risk.
From the report:
"...people often devote far less thought to their debt than to their investments. Many use credit inconsistently or, worse, reactively. This paper presents issues to consider in managing your personal liabilities in the context of your “personal balance sheet”. For most people, debt means a mortgage, car loan or credit card balance. But many affluent individuals use debt more strategically to help build wealth. managing-your-personal-liabilities
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