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If it doesn't, you could pay off part of your equity loan.
"If your municipal bond portfolio disappoints you, your equity portfolio will not," he said.
You must strive to learn whose sweat provides your equity and how it is extracted.
And when they take a hit, then your equity has just been devalued".
"You can use your equity for your advantage and pay bills or get cash out.
As it doesn't dilute your equity, it's also a very efficient form of funding.
Hollingworth says: "Even just a 5% increase in your equity level could equate to big savings".
"Reduce your equity exposure over time and in the final five years put more money into cash," he adds.
Say you put 10percentt of your equity portfolio into volatile emerging-market shares at the start of 2005.
Being a balanced fund has nothing to do with the nature of your equity or debt portfolios".
The danger is that over time, "your equity is couched in the half-off special and you don't mean much beyond that," Mr. Furse says.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com