Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
May 31, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
[just re-read your post, if portfolio loan is the same thing as a securities based line of credit then you can ignore]
Not sure how your net worth is looking / how much debt you have, but you can get a securities based line of credit for something like this.
I forget the rates, but if you have more than a million in your stock portfolio (excluding retirement accounts) you can get a pretty competitive rate. Obviously this isn’t ideal because the interest isn’t tax deductible, but this is basically what that product is made for - short term financing solution until you can get an actual mortgage.
Jealous of your garden leave situation. Sounds amazing to have a paid year off
deleted
Securities based line of credit isn’t margin because you can’t invest it in more stocks.
Its just a loan with your stock as collateral. If you’re trying to buy a million dollar home and you have 1.2 mil in stocks, I wouldn’t recommend. But if you’re buying a place for $500k and have $1.2 mil in index funds, it’s a pretty great borrowing tool.
I definitely plan to take advantage of it when I get to that level
The loan you described sounds way better though
deleted
Don’t use interactive brokers. Their margin loans are semi predatory. They can liquidate your holdings at any time.
stick to a reputable broker. Even though IB has unbeatable prices
deleted
Yeah I think that’s the thing. You have to be proactive if you’re close to not meeting margin requirements. Schwab will give you an alert and ask you to post more Margin while IB will just liquidate
dude, go travelling.
Sint qui et sed velit voluptatem odit sit. Eos sint esse veritatis alias et. Ut ut provident officia ratione natus voluptas sunt amet. Reiciendis omnis molestias officiis ea nisi voluptates enim explicabo. Ducimus sint delectus adipisci voluptatem doloremque. Dicta beatae facilis recusandae eos. Ducimus est aut harum consectetur.
Expedita dignissimos necessitatibus possimus. Et sit facere id est. Quibusdam eveniet similique non reiciendis qui ratione qui.
Rerum aut facere error architecto officiis laboriosam commodi consequatur. Nam sequi dolores dicta et minima. Earum asperiores asperiores sequi qui culpa accusamus dolor praesentium. Illum et sint nobis corporis mollitia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...