[quote=spdrun]*yawn* It’s basically a secured loan — they even existed during the tight-lending years of the 80s. Nothing horrible to see here. Same deal as getting a margin loan against an investment account, though likely with a slightly better rate.[/quote]
Um.. Please let me know where you’re getting a margin loan rate of <5%, or are you talking out of your ass?
And no, there is nothing horrible about this. This is absolutely positive. It's exactly what i was hoping for...
It works out great for folks who have long term investment gains in post tax accounts who don't want to cash out get hit with one time lump sum tax bill on cap gains...Only to have the funds purchase say an property for investment, which then gets taxed on income too.
A little planning, and you can do a part loan and part cash out me thinks, and manage how much income/cap gains is realized and spread it out over longer period of time... and if rates on the loans are low enough, the interest on the loan would be neglible (or close to it)...
