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stuart1116 (August 14, 2008 at 3:36 pm)
With falling property values and lending tightening how easy really is it to get someone in the current market conditions to pull equity out of a home? As a Financial Advisor who is also licensed in securities with a broker dealer I find that most BD's will not allow an advisor to use this strategy.
stuart1116 (August 14, 2008 at 3:32 pm)
With falling property values and lending tightening how easy really is it to get someone in the current market conditions to pull equity out of a home? As a Financial Advisor who is also licensed in securities with a broker dealer I find that most BD's will not allow an advisor to use this strategy.
aldinga123 (July 22, 2008 at 6:40 pm)
I wish that I had been part of the audience that day. As a CPA and a CFP I would more than likely loose my certification if I was ever to convince my clients to take cash out of their home and invest it in a life insurance policy, which is really where he is going with this. I am sure that Mr Andrews and his network very are well compensated by insurance and mortgage companies for their referrals. How does this guy live with himself?
Boytoru1 (May 16, 2008 at 10:05 pm)
it is true that there are insurance advisors that use this concept with the WRONG investment vehicles like whole life insurance.
Boytoru1 (May 16, 2008 at 9:52 pm)
MoneyMonk33 please finish the video before making such a comment. At 4:25 he says "there is a cost!" an employment cost to borrowing the money. He does factor this in. Where did you get that this is a heloc? Please tell me at what time (X:xx) he said that he uses a heloc to cash out the equity.
moneymonk33 (May 15, 2008 at 11:28 pm)
this is straight BSHe did not factor in that you still have to make payments on that eguity that you cashed out if you make money or not, and what if the heloc interest rate change, well you're screwed!if everything goes perfect, you can make money, but if something goes wrong, lose your job, or gain less interest rate. again you're screwed!!!!!
stemikger (April 4, 2008 at 10:04 am)
Never trust a man with dyed eyebrows
RayMartinCerimeli (January 28, 2008 at 7:44 am)
It is absolutely true that EQUITY HAS NO RATE OF RETURN. You retrieve equity tax free when you refinance. Otherwise stagnant equity grows tax free as cash value in a fixed indexed life insurance policy. It can be withdrawn tax free when you need it no matter what your age. Best of all when you pass away it blooms to several times your original investment and transfers to your heirs income tax free. This is arbitrage at its finest and an excellent retirement and estate planning strategy.
missedfortune (October 18, 2007 at 6:16 am)
Certain Life insurance policies, when structured correctly (big emphasis), will absolutely compete with mutual fund rates - because they can be accessed tax free! The bigger issue, of course, is safety and liquidity - we NEVER recommend that serious cash be put in jeopardy within the stock market. This is all fully explained in the book "Missed Fortune 101".
busybee64 (October 17, 2007 at 4:43 pm)
The general strategy is sound. But I would avoid any kind of annuities or life insurance scheme, which typically have high fees, high surrender charges and are sold by advisers who are particularly keen to close a deal because of the high front load commissions. I would instead borrow interest only, and then invest in a very diverse mix of stocks and tax free bonds that essentially have the same effect. You can buy ETF's that are as liquid as anything. |
