Stop thinking about investing as money put away forever.
Don't wait till 70 to use your wealth. But don't sell either.
Use an SBLOC and get cheap credit and access to your wealth.
@theficouple Car loans can be useful, but only when rates are low. If you can get in under 3% that loan is cheap, and the money you would've used to pay in cash, can be put somewhere more productive.
$500k+ is definitely not poor, but a huge amount of this bracket's income is tied up in assets.
Liquidity becomes key here which is where CompyFi, comes in. If you've got a cashflow problem and a big taxable brokerage, we solve that problem.
@fintechfrank Liquidity problem, not a true paycheck to paycheck situation. These people likely have huge amounts tied up in real estate, 401ks and brokerage. They just need lending tools to access it
HELOC -> Home equity line of credit: revolving line of credit against real estate
Cash out refi - > Refinance mortgage for cash, benefit of this is they usually have a locked in rate, the negative is it's not revolving
SBLOC -> Securities backed line of credit: revolving line of credit against securities (stocks, etfs, ...)
The basic idea is as follows when rates are low (think ahead a bit here as all these revolving instruments are floating) borrow while your assets grow faster than the loan.
Important to note too these are all leverage, so you need to be careful about your loan to value and stay conservative.
SBLOCs for everyone. CompyFi lets you utilize the same exact strategy the ultra wealthy have done for years.
Borrow against your securities while keeping them in the market growing.
Don't sell stocks when you need cash.
If you have a 50k portfolio you can borrow against that. Keeping your money in the market, growing at 9% while your loans interest is < than that.
You'll get paid to borrow ...
Just make sure your LTV stays healthy.
@darrelltalksfi What a lot of people don't know is this same strategy is available on your own taxable brokerage or home. Just be careful you don't borrow too much against it
SBLOCs are misunderstood and underutilized.
They are one of the best tools you can use if you have a taxable brokerage account.
Why sell securities when you can use them and still have them invested.