How much of my assets should I invest? As financial advisors, this is one of the most common questions we receive. Our response: instead think of how much of your assets you should not be investing and keeping aside as emergency funds. You can and should go ahead and invest everything in excess of this. The aim is to beat inflation and at the same time, grow your wealth. This strategy enables maximum utilization of your funds and ensures that your money is working hard enough for you. All you need to do is to make sure that you have sufficient liquidity with your investments of choice and they match your risk tolerance.
However, if you have reservations about this approach to investment, fret not! The investment to total assets ratio metric has been formulated to help you ascertain the minimum amount you should be investing relative to your assets. Essentially, the metric establishes a baseline for you to ensure good financial health.