Monetary Matters with Jack Farley Is Leverage the Solution to America’s Retirement Crisis? | Abdul Al-Asaad of Basic Capital
Jul 1, 2025
Abdul Al-Asaad, CEO and co-founder of Basic Capital, is reshaping how everyday Americans can leverage their 401ks for investment. He discusses the dangers of unproductive credit use and advocates for positive leveraging to build wealth. Al-Asaad explains how Basic Capital's term financing invests primarily in private credit, emphasizing that inaction could be riskier than making leveraged investments. He also sheds light on the fee structure and the need to revolutionize credit access, particularly to enhance retirement savings.
AI Snips
Chapters
Books
Transcript
Episode notes
Idea's Big Societal Impact
- The backlash against Basic Capital showed the idea's massive potential societal impact.
- Critics got wrong that the change would be negative; the idea aims to improve society.
Leverage as Neutral Tool
- Leverage is a morally neutral general-purpose tool like a shovel or airplane.
- Credit is mostly given for consumption, but it should be available for productive investing.
Manage Leverage Risk Wisely
- Manage leverage risk by limiting exposure using limited liability companies.
- Size bets thoughtfully to avoid risking more than you can lose.
