When is the Best Time for a LeverageLine?
One of the questions we get often at A. B. Nicholas is “When is the best time for a stock loan?” – a loan against one’s stock portfolio rather than on one’s credit or a loan guranteed by another asset or assets. In truth, the best time for a LeverageLine-type stock loan is virtually anty time. But we’ve found that the majority of our borrowers choose a time when they feel the market is relatively healthy.
By “healthy” we mean that interest rates, tax policy, and overall national economic robustness are key elements in the decision making process. When rates are percived as high, the incentive to finance against one’s portfolio is diminished greatly. The high interest envirnoment of the United States since 2020 has been a major influence on the weakening of the financial markets across the board.
By “healthy” we also means that capital gains tax policy contributes to costs by taxing good investment decisions at a higher rate. Again, this can discourage individuals from entering the stock market at all, but it also disincentivizes investors against selling one’s stocks.. So high capital gains taxes can in fact be a very compelling argument to get a Leverageline stock loan instead.
Finally, there is the “intangibles” — the way the investing consumer views the overall economy. Uncertainty typically causes investors to hold tight, or at least to place their assets into assets like gold or precious metals. This factor is usually te most difficult to locate and anaylze, since it doesn’t alway lend itself to details. However, the overall sense of consumer sentiment, whioch has been up and downn over the past three years, can cause the typicaly investor to circle the wagons and hold right rather than do virtually anything with their securities portfolio.
Personalized Stock-Based Line of Credit (SBLOC) Financing
At A. B. Nicholas we understand these considerations, all of them pefectvely valid. This is why we never accept any “hard sell” tactics or upselling of services here. We present what we can offer, we invited oour clients to make use of it, and then we process to delive the lowest-rate, highest-LTV financing we can. In this way, we make sure that every A. B. Nicholas client leaves satisfed that indeed, they’ve chosen the right time to obtain their stock loan LeverageLine.
One of the questions we get often at A. B. Nicholas is “When is the best time for a stock loan?” – a loan against one’s stock portfolio rather than on one’s credit or a loan guranteed by another asset or assets. In truth, the best time for a LeverageLine-type stock loan is virtually anty time. But we’ve found that the majority of our borrowers choose a time when they feel the market is relatively healthy.
By “healthy” we mean that interest rates, tax policy, and overall national economic robustness are key elements in the decision making process. When rates are percived as high, the incentive to finance against one’s portfolio is diminished greatly. The high interest envirnoment of the United States since 2020 has been a major influence on the weakening of the financial markets across the board.
By “healthy” we also means that capital gains tax policy contributes to costs by taxing good investment decisions at a higher rate. Again, this can discourage individuals from entering the stock market at all, but it also disincentivizes investors against selling one’s stocks.. So high capital gains taxes can in fact be a very compelling argument to get a Leverageline stock loan instead.
Finally, there is the “intangibles” — the way the investing consumer views the overall economy. Uncertainty typically causes investors to hold tight, or at least to place their assets into assets like gold or precious metals. This factor is usually te most difficult to locate and anaylze, since it doesn’t alway lend itself to details. However, the overall sense of consumer sentiment, whioch has been up and downn over the past three years, can cause the typicaly investor to circle the wagons and hold right rather than do virtually anything with their securities portfolio.
At A. B. Nicholas we understand these considerations, all of them pefectvely valid. This is why we never accept any “hard sell” tactics or upselling of services here. We present what we can offer, we invited oour clients to make use of it, and then we process to delive the lowest-rate, highest-LTV financing we can. In this way, we make sure that every A. B. Nicholas client leaves satisfed that indeed, they’ve chosen the right time to obtain their stock loan LeverageLine.