Should You Sell or Borrow from Your Portfolio?

Many investors assume that if they need cash, even for short-term expenses, they have one option: sell their investments. In Episode 30 of The Decision Dividend, we discuss a less widely understood option, borrowing against your investment portfolio. It may be one option for accessing short-term liquidity, but it also introduces tradeoffs that stretch beyond the interest rate. You’ll learn: Four ways to access cash from your portfolio Six criteria to consider when evaluating tradeoffs How to use this framework in three example situations Even if you don’t need this today, understanding how it works may help inform your decision if the need arises. Chapters: 00:00 Why Liquidity Builds Confidence - Why having access to cash affects how confidently you invest your portfolio 02:15 Temporary Liquidity vs Permanent Leverage - Why borrowing should be time-constrained and where it can become risky 04:30 The Four Ways to Access Cash - Selling securities, portfolio lines, HELOCs, and traditional loans 07:45 The 6 Tradeoffs That Matter - Origination, cost, taxes, rate structure, behavior, and risk 12:45 Case Study 1: Helping a Child Buy a Home - A short-term need where avoiding capital gains can make a difference 15:45 Case Study 2: Business Working Capital - Using a portfolio when traditional lending isn’t available or practical 18:45 Case Study 3: Funding a Major Purchase - Why flexibility can become a downside without a repayment plan 21:30 Key Takeaways: Simplicity vs Flexibility - Why selling is often the answer and when borrowing makes sense Follow on Apple Podcasts: https://podcasts.apple.com/us/podcast... Follow on Spotify: https://open.spotify.com/show/26NYX6W... Subscribe for Email Updates: https://greenspringadvisors.com/green... Meet with Pat & Marcus: https://outlook.office365.com/book/Ma... Sources (1) Securities Backed Line of Credit Explained (FINRA. 2024) https://www.finra.org/investors/insig... (2) Know What Triggers a Margin Call (FINRA, 2023) https://www.finra.org/investors/insig... Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.