As we turn the page on a tumultuous year, many of us are looking ahead to a better and brighter 2021. And while the pandemic will hopefully fade into memory, one thing is still unavoidable: taxes.
While your clients may have benefited from sound investing, they may not have enough liquidity to cover this year’s tax bill. For these individuals and many others, a Securities-Backed Line of Credit (SBLOC) could provide the flexibility needed to pay 2020 taxes and keep their investments intact.
For financial professionals and their clients, meeting tax obligations can often require liquidating portfolio holdings. Selling portfolio assets disrupts their clients’ investment strategies, results in the loss of accumulated wealth, and can trigger capital gains.
The good news is that The Bancorp SBLOC enables financial professionals and their clients to efficiently and effectively leverage nonretirement-invested assets to secure a flexible line of credit by pledging their portfolio as collateral. More importantly, the SBLOC provides convenient access to liquidity to pay tax bills and meet other cash needs all year long without disrupting long-term financial goals.
If an upcoming tax bill or financial obligation could impact your clients’ investment portfolios, now is the perfect time to recommend The Bancorp SBLOC. With no application fees1 and no charge for the credit-line portion not in use, the SBLOC is a low-cost solution to your clients’ liquidity needs.2