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Every time you make a withdrawal, you lose the compounding of what that money can do for you.
That $25,000 doesn't just cost you the $25,000... but all the earnings that $25,000 would be earning for you if you left it there. That's an opportunity cost.
Instead of forfeiting it all, one can either:
a) Borrow against against eligible securities via margin loan. The securities would continue to rise (and fall) and the borrower would just have to make sure the loan stays current and the leveraged securities value constant or rising. If the securities value falls against the borrowed amount, the difference is due in 3 days (I believe).
Margin Call
b) Borrow against cash values in life insurance. The original cash values would continue to grow as though you never touched it, however, any loan interest not paid out of pocket, would be deducted against the cash values and/or current earnings.
In either case, you can have your original values continue to grow, if you're willing to pay loan interest and/or take on the margin loan risk with eligible securities.
That $25,000 doesn't just cost you the $25,000... but all the earnings that $25,000 would be earning for you if you left it there. That's an opportunity cost.
Instead of forfeiting it all, one can either:
a) Borrow against against eligible securities via margin loan. The securities would continue to rise (and fall) and the borrower would just have to make sure the loan stays current and the leveraged securities value constant or rising. If the securities value falls against the borrowed amount, the difference is due in 3 days (I believe).
Margin Call
b) Borrow against cash values in life insurance. The original cash values would continue to grow as though you never touched it, however, any loan interest not paid out of pocket, would be deducted against the cash values and/or current earnings.
In either case, you can have your original values continue to grow, if you're willing to pay loan interest and/or take on the margin loan risk with eligible securities.