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10 years ago, I (foolishly?) bought into a type of "insurance" sold by Equitable. It was a term policy, and was connected to an investment vehicle that worked like this: after the amount for term insurance was deducted from each contribution, the rest was invested in mutual funds (I selected the choices). At any time I wished, I could borrow money from my account at a 1% interest rate. The idea was that I could then access the full account this way without paying any more taxes, since these withdrawals were "loans" far below market rates. One thing I forgot, and that was how expensive term insurance gets as you age. I don't need the insurance now, but the only way to get the money out is apparently to do a "1035 transfer" which prevents me from having to pay taxes on the gains. I'm wondering, though, whether I should even bother with this, or just cash in the policy for its redemption value, pay the capital gains on it, and then invest it Foolishly. Does anyone know of a good investment that could be made with the 1035? I've only found annuities that do the 1035s, not equity investments.
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