By borrowing against assets in your life, you can increase your investments. That way you obtain an effect of leverage. You'll get increased gain when the market goes up, but also a bigger loss when it's going down.
If you are trading through E*Trade you can use E*Trades credit facility.
Call customer service for more information.
When you use a credit facility this way you have to increase or descrease the loan yourself by transferring monies from the policy to your credit facility and vice versa. Just what you would do in a checking account with credit. |
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If the amount of the loan exceeds your limit then Ancoria Fund Administration has the right to sell assets from your Life Policy in order to cover your debt and interest due. In that case Ancoria Fund Administration will charge an administration fee and an overdraft fee.
In other words, your credit is with Ancoria Fund Administration and your assets in your Life Policy.
Current fees and interest rates for account credits at Ancoria Fund Administration. |
