If you ever need to borrow money, your investment accounts might offer the simplest solution – and maybe even the cheapest. Our partnership with Goldman Sachs allows you to establish a revolving line of credit by leveraging your investment accounts. The amount of the line and the interest rate are based on the size of your accounts and how they are invested.

According to Patrick Jubard, Regional Lending Manager at Goldman Sachs Private Bank, “The idea is to provide liquidity to clients, so they don’t have to sell assets. If the market is way up, then they sell, they might have a capital gains tax issue to deal with; or if you have what happened last March and the market goes way down, if you sell at the wrong time, you might miss the rebound.”

Goldman Sachs will allow you to leverage any non-retirement accounts, such as stocks, bonds, mutual funds, and managed money. The process is incredibly simple - it’s all done online with an efficient approach to underwriting. As Patrick says, “We don’t need tax returns, we don’t need personal financial statements, we don’t need verification of income. It’s very straightforward as we typically advance 65% on equities, 65% to 80% on the fixed income instruments in the portfolio, plus we’ll give full credit for the cash that’s in there as well. Lastly, based on that calculation, we’ll determine the line size, which also helps determine the interest rate.” 

The interest rate is based on 1-month LIBOR plus a spread based on the line size - the smallest loan carries the highest spread of 3.00%. Repayment is interest-only, payable monthly with no prepayment penalties. As long as you make the interest payments, you can pay the principal back whenever you want. The investment accounts need a minimum balance of $150,000; lines can range from $75,000 to $25 million.

Want to learn more about leveraging your investments? We are here to help!