How Asset-Backed Loans Can Fund Big Purchases (and the Pitfalls to Avoid)
HTML-код
- Опубликовано: 16 сен 2024
- Moving homes but can’t sell your current one yet? Want to make a big purchase but you don’t want the massive tax bill? An asset-backed loan can help you strategize and optimize on these big-ticket expenses. However, there are plenty of pitfalls to look out for.
Jump start your journey with our FREE financial resources: moneyguy.com/r...
Reach your goals faster with our products: learn.moneyguy...
Subscribe on RUclips for early access and go beyond the podcast: www.youtube.co...
Connect with us on social media for more content: moneyguy.com/l...
Take the relationship to the next level and become a client: moneyguy.com/w...
Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
One of my older relatives did this to help us put the down on our home. After it was all sorted out, that relative did the same thing for my sibling.
Then, that relative did an asset-backed loan for a friend who defaulted and walked away. My relative lost everything, including their house, and now lives in an ADU in someone's backyard and is starting retirement over at 80 with a small fraction of what they had at 65. They're lucky to have some social security to work with.
Be very careful.
The number one pitfall is trusting a CFP blindly with your money thus wasting 10, 20, 30% or more of your portfolio earnings in fees. Only use a CFP that will educate you to the point that you no longer need him.
This is called SBLOC - Securities based line of credit.
Tied to SOFR+ a fixed rate based on your portfolio size and borrowed amount.
SOFR= secured overnight floating rate.
My wife and I are inheriting my parent’s home that is paid off. We are thinking about selling our home when the time comes and using the profit to renovate my parent’s home (which would then be our home). Could we use a loan against our current home to pay for those renovations prior to selling / moving? Great content!
These loans are the key to real wealth according to Robert Kiyosaki...lol.