Equity vs. Debt Allocation
How you allocate your assets between equity and debt is one of the most important decisions you’ll make when investing. In addition to being riskier, equity investments, such as stocks, also offer higher returns. Compared to equity investments, bonds offer a lower return, but they offer a lower level of risk. What’s the ideal equity-to-debt allocation for you? Depending on your personal circumstances and risk tolerance, that will differ. However, you can make an informed decision if you follow some general guidelines. Equity 101An equity investment is a form of ownership in a specific company....