[Kiana]

The only way it would make sense is if u did a home equity loan at a way low % (2.25%) and put it in a hysa at like 5%. But with rates now that makes absolutely no sense plus the hassle.

[Twyla]

I will add that interest rate in HE is around 8%. He is making that much by not cashing out. I would never do this not to mention you will now have a debt payment that needs to be paid back. His advisor is selfish. The market has a track record but nothing is given. There are still risks to contend with. Just No.

[Tim]

As a Certified Financial Planner, I’d just like to say this is a terrible idea. Please encourage him not to do this and fire his current advisor immediately.

[Kennedy]

Financial advisors make no money off the equity you have in your paid off house. Thus, this (self-interested) advice. Yes, this is just this “advisor’s” way of generating profit for himself.

[Dan]

Congrats on escaping Edward Jones and no longer paying them a bunch to make you less than you can make on your own with index funds. Regarding this friend…I don’t think I’d pay any mind to advice from someone blowing money on a bad financial advisor giving terrible (and probably unethical) advice. And anyone desperate or greedy enough to take out a loan to invest is probably a very poor model anyway, since such measures are simply not necessary to achieve financial independence.

[Author]

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