Welcome to the page for
Asset and Liability Management
Four easy steps to developing a personal financial plan and then following through:
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Maximizing asset growth requires extensive use of leverage. That's the use of borrowed money to aquire assets.
Borrowed money is a liability and contorolled asset growth means control over liabilities as much as control of the assets.
The finance costs of earning assets needs to be lower than the earn rate of the assets. And long term assets needs to be financed with long term debt, short term assets with short term debt. This kind of term matching is critical to asset liability management.
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