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To: nufsed
Equity has no loan-to-value, it's not very liquid, hard to take out when you need it (unemployed, injured, or elderly).

Huh? 6 months ago I was getting 10 calls a week from lenders begging me to cash out my equity. No fees, below market rates, 125% to value, etc. I realize that things have changed but to state there is no loan-to-value or liquidity is just not correct.

Secondly, where does one find anything yielding 8.27% after tax, 12.7% at marginal rate of 35%, now that Madoff is going to prison?

27 posted on 12/17/2008 12:28:19 PM PST by JrsyJack (We Shoot, We Vote, We're angry!)
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To: JrsyJack
I meant to say that equity doesn not have a rate of return. Sorry, I mistakenly said LTV.

Old Mutual is averaging 8.27% tax free over the last 25 years. It was 9.6 but they just adjusted down because of this years record. There is a guarantee of 1% so when the market goes down, your gain is 1%. It's agood way to build retirement.

There is no loss of principle and they have out run the S&P index the last 25 years.

32 posted on 12/17/2008 12:35:25 PM PST by nufsed
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