[drewrbaker]

I assumed the point of this product was to buy it in a tax deferred account, then loan against it. You’d have zero risk of a margin call ever happening. Then after you’re dead it’s a guaranteed payoff of the loan. Would be a very very cheap way to convert your tax deferred accounts into tax free liquid cash now.

[somebodythere]

Loans against a retirement account are treated as distributions under the tax code.

[drewrbaker]

You are correct. I did not know that.

Explained here: https://finance.zacks.com/can-retirement-accounts-used-colla...