I would like to avoid selling portion of my portfolio due to tax reasons and because I really believe it has a potential to go up. Yet I need significant amount of cash for a life event. Several hundred thousands usd. I hear about the option to take securities backed loan but can't find any details. What is the common LTV? What are the current rates? Does Fidelity offer this? If not which broker does? Checked IB and it was a no go. Anyone done it? What was your experience? Thx TC: 550
Looks like Schwab does it: https://www.schwab.com/pledged-asset-line The rate goes down the more you borrow
the term youโre looking for is pledged asset line. Schwab does it, starts at ~4 percent interest and goes lower depending on your assets. how much $$$ do you have in stonks? You can usually negotiate interest rates. also Iโm sure a lot of banks/brokerages offer this if you are a HNW client, you just have to ask.
IB margin loan
Fidelity allows you to borrow upto 50% of your security amount. 8% interest if its less than 50k. You can transfer and get the money on the same day
Thanks guys, I have about 1M in the Fidelity account, but 300k of that is in deffered and about 200k in 401k. Need to take out about 250k. Will try to call Fidelity, don't want to pay more than 3%
I'm wondering the same thing....I know wealthfront does this, but the loan was expensive...~4-5%