You should always think twice before borrowing to invest because this increases the risk of losses, as a retiree who took out huge loans to buy $2 million worth of insurance products found out.
The 67-year-old man thought he had chanced upon a good investment plan that could pay for his monthly expenses because his bank’s manager told him he could borrow to pay for 70 per cent of the single-premium policy. So he paid $300,000 and was given a loan of over $700,000 to pay for the million-dollar plan.
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