When to Cash In and When to Double DownSubmitted by Bellwether Wealth on February 23rd, 2018
If you’re like us at Bellwether Wealth, you’re always on the lookout for the next opportunity to grow your financial reserves. And that’s a great quality to have when the objective is to solidify your financial future. But, before you think about cashing in, consider an alternate approach; investing in a securities-backed line of credit.
Before you throw your hands up in the air, allow us to explain. A securities-backed line of credit is a debt collateralized by a portfolio of your eligible stocks and bonds. Depending on the lenders agreement, this could give you something between 30% and 95% credit of your securities. As the value of your securities changes, so does the credit available from your securities-backed line of credit. Loosely, this allows you to use the money earned from your stocks and bonds without selling or cashing in.
As with any investment or loan, a security plan needs to be in place and much is to be considered before making any decisions. As the saying goes, “what goes up, must come down.” The same thought applies to, “whatever you borrow must be repaid.”
If you’re ready to exercise your stock options, or if you believe the opportunity is greater than keeping your eggs in one stock’s basket, by all means, cash in and make your financial dreams come true. Our team of certified financial planners can help you assess your current situation and help you make the best decision while keeping your financial goals in mind. Contact our office for more information at 402-476-8844 or email email@example.com.
This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed by Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC, as to accuracy and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Past performance does not guarantee future results Bellwether Wealth is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Kestra IS and Kestra AS and Bellwether wealth are not affiliated with Albers Communications LLC.