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Why It Makes Sense to Leverage Your Portfolio…

  • Using your stock portfolio as collateral for a credit line can be a better option than selling the portfolio outright to raise capital for several reasons.Firstly, selling your stock portfolio can result in capital gains taxes, which can significantly reduce your returns.
  • By using your portfolio as collateral instead, you can access the funds you need without having to sell any shares and potentially incur substantial tax liabilities.Secondly, selling your portfolio can result in missed opportunities for future growth or income. In many cases, it may be preferable to hold onto your investments rather than selling them off prematurely.By using your portfolio as collateral instead, you can still retain ownership of your investments while also accessing the capital you need to finance other goals or obligations.
  • Overall, using your stock portfolio as collateral for a credit line can provide a more tax-efficient and financially savvy way to access the capital you need without sacrificing your long-term investment objectives.
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