Sometimes liquidity needs arise, whether they’re planned or unexpected. With a securities-based line of credit in place, you’ll have ready access to capital without having to liquidate your investments. You can use your marketable securities, such as stocks, bonds and mutual funds, as collateral. And of course, we’ll consider how it all fits into your overall wealth plan—balancing your short-term needs with long-term goals to create the right approach for you.
A securities-based line of credit can be a flexible and cost-effective way to access liquidity strategically. Whether you are looking to fund a new purchase, renovate your home or take advantage of a timely investment opportunity. Using a line of credit allows you to remain invested and keep your investment portfolio intact.
Benefits that can make a securities-based line of credit a valuable complement to your investment portfolio:
- Stay invested. Keep your investment plan and asset allocation in place without disrupting your long-term strategy
- Financial flexibility. Quickly access liquidity for a range of uses—whether you’re meeting large financial obligations or seizing an opportunity
- Cost-effective. There are no setup fees, and only the funds you use incur interest charges, which are often lower than other financing options.
- Potentially tax-efficient. A securities-based line of credit can potentially be structured in a tax-efficient way, which may allow you to more effectively grow and preserve your wealth.
As with all investment decisions, it’s important to understand the risks of borrowing before moving forward. Events beyond your control, like market fluctuations that may reduce the value of your pledged securities, could lead to a margin call. We’re here to help you make the best decisions for your needs. Today and in the future.