Hi Guys, I have got $50k worth of stocks in my brokerage account. I would like to take loan out of my stocks., because if I sell them I have pay capital gains taxes. Instead I would like to take loan out of it to buy some assets. What would be the best way to do it? Any suggestions are appreciated 😊 TC: 250k #personalfinance
If you can hold off the purchase for some time, try to save up the money and pay for it in cash. If you have some money in 401k, you can take a loan on that too. And the interest you pay goes to your own account. So you pay the interest to yourself.
Nice this seems like good ideas. Thanks.
This is a margin loan. Contact the bank. Many bought homes by borrowing down payment against their RSUs but be prepared to pay a high interest rate.
Oh I see.. probably not going to be a good idea unless if the investment I made return more than interest I pay for stock lending.
Yes ofc. And those who took these loans to buy homes in 2021 will be surprised when banks margin call them if the market falls (both stocks and housing)
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Look up margin loans. Interactive brokers has better rates typically but it looks quite expensive right now. You’re probably better off waiting and paying the long term capital gains rate.
Ok.. do you think it’s a good idea to do this way ? Or do you have any suggestions?
For you? No I think it’s a terrible option, lol. But it’s a tool that can be useful at times and it does what you asked for. Throw money into a high yield savings account until you have enough to pay cash.