If an upcoming tax bill or financial obligation could impact your clients’ investment portfolios, now is the perfect time to recommend
The Bancorp SBLOC.

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.

SBLOC Advantages

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.

The SBLOC offers tangible benefits to both financial professionals and their clients:

  • Clients can draw on a line of credit that may ease the potential negative consequences of liquidating assets.
  • Clients can pay SBLOC balances at their discretion, with only a minimum monthly interest payment required.
  • Financial professionals don’t have to disrupt their clients’ wealth management strategies and can maintain AUM.
  • Financial professionals can avoid untimely liquidations and strategically sell their clients’ assets (e.g., low cost basis, restricted shares, or impending bonuses) at their discretion.

Conclusion

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

1. The Bancorp Bank does not charge an application fee. State, local, and/or third-party fees may apply in some states.

2. An SBLOC cannot be used for the purchase of additional securities or to pay off a margin loan that was used to purchase securities.

 

The opinions, findings, or perspectives expressed in this content are those of the author and do not reflect the official policy or position of The Bancorp, Inc., its affiliates, or its or their employees.