How the Wealthy Use SBLOCs to Borrow Tax-Free Without Selling - E25
Michael and Brady dive into one of the most misunderstood yet increasingly leveraged financial tools for high earners and investors, the Securities-Backed Line of Credit (SBLOC). Is it a smart strategy to unlock liquidity without triggering taxes, or a risky move that could backfire in volatile markets? Whether you’re navigating emergency funding, eyeing a new investment opportunity, or building a financial moat around your wealth, this episode breaks down everything you need to know about SBLOCs — how they work, when to use them, the risks involved, and how to make them a powerful piece of your planning arsenal. Don't miss this insightful conversation designed to help you think smarter about accessing capital while keeping your portfolio intact.
Key Timestamps:
(00:00) - What is a Securities-Backed Line of Credit?
(03:00) - Comparison to a Home Equity Line of Credit (HELOC)
(06:00) - Key differences in setup: HELOC vs. SBLOC
(10:00) - Tax implications and investment preservation
(12:00) - Preserving portfolio value with SBLOC
(14:00) - Impact of portfolio growth on line of credit
(16:00) - Risks of withdrawing during down markets
(21:00) - SOFR rate and tiered interest costs
(23:00) - Strategic planning for loans and purchases
(25:00) - Using SBLOCs during market downturns
(26:00) - Protecting against emotional investing
(29:00) - When to consult an advisor or CPA
Key Topics Discussed:
Financial Fortitude, Genesis Wealth Planning, Brady Hemmerle, Michael Acosta, Financial Wellness, Wealth Building, Financial Psychology, Financial Advisor, Finance Coach, Student Loan Debt, Finance Guidance for High Earners, Business Owner Finances, Hiring a Financial Advisor, Student Loan Forgiveness, Tax Strategies, Retirement Planning, Investing Strategies, The Dave Ramsey Show, BiggerPockets Podcast, The Motley Fool Money Show, We Study Billionaires, ChooseFI, Afford Anything, Securities-Backed Line of Credit, SBLOC investment strategy, Tax-efficient borrowing, Portfolio-backed lending, Liquidity without selling assets
Mentions:
Website: https://www.genesiswealthplanning.com/
Michael’s LinkedIn: https://www.linkedin.com/in/michaelracosta/
Brady’s LinkedIn: https://www.linkedin.com/in/brady-hemmerle-cfp%C2%AE-75043013a/
Financial Health Checkup: https://www.livingbalancesheet.com/lbsVision/lite/michaelracosta
This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or Genesis Wealth Planning and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value.
Michael Acosta is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 6115 PARK SOUTH DRIVE, SUITE 200, CHARLOTTE NC, 28210, 704-5528507. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Genesis Wealth Planning is not an affiliate or subsidiary of PAS or Guardian. CA Insurance License # 0M50974. 7237198.12. Expiration 8-27.
