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I assumed the point of this product was to buy it in a tax deferred account, then loan against it. You’d have zero risk of a margin call ever happening. Then af
by drewrbaker 3y ago
I assumed the point of this product was to buy it in a tax deferred account, then loan against it. You’d have zero risk of a margin call ever happening. Then after you’re dead it’s a guaranteed payoff of the loan. Would be a very very cheap way to convert your tax deferred accounts into tax free liquid cash now.
- somebodythere 3y agoLoans against a retirement account are treated as distributions under the tax code.
- drewrbaker 3y agoYou are correct. I did not know that. Explained here: https://finance.zacks.com/can-retirement-accounts-used-collateral-10466.html https://finance.zacks.com/can-retirement-accounts-used-colla...