#503 - Should I Borrow Against My Investments to Buy a House?

Did you know that there is another way to borrow money to purchase a home that is not a mortgage? Larry is thinking about using a securities-based line of credit against his after-tax investment account to borrow to buy a house. Discover my opinion on this optimization question on this episode of Retirement Answer Man.

Listen in to also hear my August reads and learn about the importance of protein to keep strong as you age. Press play now.

Use your plan of record to help you optimize your retirement

If you’re looking to not just survive retirement but lean in and rock retirement you need to do the work and have a plan of record. With your plan of record in place you can make decisions to optimize your retirement.

Larry’s optimization question is a good example of one way to tweak your retirement plan. As you consider a question like this you can test it against your retirement plan of record. Weighing the pros and cons as we do in this episode is helpful, but it isn’t until you test it against your plan that you will be able to decide whether it is the right decision for your situation. Listen in to hear the positives and negatives of borrowing against your investments.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

BOOKS I READ IN AUGUST

[2:58] The Wager
[6:02] American Prometheus
[7:12] Outlive
[9:09] The Courage to Be Disliked
[10:06] The Big Short

LISTENER QUESTIONS

[11:14] Should Larry use an after-tax investment account to borrow to buy a house?
[21:33] Jennifer wants to hear more about pretirement
[26:25] How to get the Roth clock ticking when you don’t qualify for a Roth
[28:18] On discussing faith in the RRC
[29:20] The costs of alcohol
[30:12] Richard’s thank you on 500 episodes
[31:34] Do the same (golden) rules apply to Roth 401Ks as Roth IRAs