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While there are no guarantees, the
following Conservative Leverage Checklist should significantly
enhance the odds of benefiting from borrowing to invest. Each of the
conditions for conservative leverage essentially addresses one or
more of the leverage-related risks.
- Stay Conservative on cash flow, collateral, and emotions
- Eliminate the risk of a margin call
- Invest long term, minimum of 8-10 years
- Diversify in several (global equity) funds
- Use a trusted advisor to help understand all pros and cons, implement, and stick to the plan
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