Okay, let me start out by saying, whenever someone needs to make more money, they come up with a whacky idea for people to participate in. And this is one of them.
I ABSOLUTELY disagree with anyone who tells their client to get the cash out of their house to buy an annuity. It is absolutely stupid. LEt me explain. Yes, house money is tax deductible…yes, annuities are tax deferred. But when mortgage rates are low, so are interest rates on annuities. Their is simply not enough reward in beating the spread to make it worth it.
Now, for a younger client, MAYBE just maybe it may make sense. But for senior clients who don’t have a high risk tolerance, it is absolutely a bad move. Why oput yourself under added pressure and have higher payments. You retired to relax. And if you need to make more money, this may not be the best way to do it.
These are just my thoughts and I wanted to share them. I hope this helps.