This means one can borrow money from their policy and
still earn a return on investment in the policy, then investing the funds in another investment, so that the total return is multiplied.
Not exact matches
What this means is the policy is
still earning a rate of
return and the borrowed money is also creating a
return on investment.
I don't know about that... If I were in the 20 % tax bracket, using an RRSP would
still reduce my taxable income and thereby provide a 20 %
return in tax credits... Assuming that when I'm retired, my
earned income would go to zero and I can withdraw my RSP money at a rate which is below my basic exemption and thereby get it essentially tax - free... So, in effect, that would be like getting an immediate 20 %
investment return on that cash up front, plus whatever the future
investment gain might be.
The article however,
still remains positive, stating that new graduates should see a greater
return on their educational
investment, thanks to the potential to
earn a higher income over their lifetime.
Also, since you
still earn the appreciation
on your
investment despite using the equity that paid for the
investment, it may be cheaper than drawing money out of your retirement accounts as that money used will no longer see a
return.
Your cash flow may be low or even negative
on the property but it might
still be a good
investment if you are
earning a good
return through an increase in equity.