What are the pros and cons of investing in annuities using leverage?

Anyone has experience investing in annuities using leverage?

My RM is promoting this to me. Supposedly I can borrow 40 to 60% from the bank to invest. I.e., if the annuity is $100k, I only need to fork out $40 to $60k and still get the interest on the full amount. Of course, have to pay interest for the leveraged amount.

How does this perform through recessions/bad economy? Any risk of losing everything?

Discussion (5)

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05 Apr 2021

U r all eggs

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1M45

11 Dec 2020

DBS pushing manulife annuity with leverage? Last time they pushed me too. didn't take up. I do rough calculation the payout is approximate 4%. havent deduct repaying the interest. If according to damien interest is 2%. Then your payout only 2%. Affect your TDSR also. why take the risk. Just take your time DCA into SReit.

They also push me some unit trust with sale charge 1% and claim is special offer to Teasures only. i buy from any brokerage 0% sale charge.

That why when i invest, i dont like to invest with bank.