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The Cash Advantage Program



The Cash Advantage Program is a special program that is available to our eligible investment clients that are currently taking advantage of The AssetMark Platform. AssetMark is an Asset and Wealth Management Firm that we have a special relationship with, and we routinely utilize AssetMark as we work to help our clients access the financial markets and invest for the future.

To learn more about AssetMark, please refer to our Wealth Accumulation Page.

The Cash Advantage Program provides our eligible investment clients with a Securities-Backed Line Of Credit, which is commonly referred to as an "SBLOC." An SBLOC is a highly innovative lending solution for individuals, couples, families, and business owners that have a need for liquidity. It allows you to tap into the value of your investments while your portfolio and investment strategies remain intact.


The Cash Advantage Program provides an interest-only revolving line of credit backed by non-qualified securities held within your investment portfolio. The term non-qualified refers to investment accounts that are not retirement accounts. That means that investments held within an Individual Retirement Account (IRA) or any other type of retirement account are not eligible for the program.

The Players



The Asset & Wealth Management Firm

The Financial Advisor

The Custodian

The Lender

  • C.M. Carrillo Financial Advising, Prosperity Wealth Management, Inc., AssetMark Trust Company, and Supernova Lending, LLC. are all separate and unaffiliated entities.

  • Cash Advantage is a service of AssetMark Trust Company, an Arizona licensed trust company. AssetMark Trust is a subsidiary of AssetMark, Inc.
  • Christopher M. Carrillo is a licensed Investment Advisor Representative (IAR) of Prosperity Wealth Management, Inc., a Registered Investment Advisor (RIA).

  • Loans are provided by Supernova Lending, LLC.


The Cash Advantage Program makes it possible to manage both sides of the Balance Sheet.


Uses May Include

  • Business Investments
  • Business Expenses (Payroll, Inventory, Etc.)
  • Debt Consolidation
  • Debt Management
  • Tuition & Other Education Related Expenses
  • Taxes
  • Other Liquidity Needs
  • Emergency Fund
  • Home Repairs
  • Home Renovation / Remodel
  • Home Additions
  • Real Estate Purchases (Residential & Commercial)
  • Real Estate Investments (Residential & Commercial)
  • Bridge Loans
  • Personal Auto Purchases
  • Commercial Auto Purchases

It is vitally important to have an emergency fund. An emergency fund is actually one of the components that comprises the
Risk
Management level of planning, which of course establishes the foundation of any sound financial plan. A line of
credit is essentially a bucket of money that can serve as your emergency fund. As Tom Anderson reminds us,

"You need to proactively set up lines of credit in good times and access them in bad times."


Strategic Applications


 

"Wealth Management Lending is not a product. It's a service and it's all about cost effective liquidity."
– Tom Anderson, Supernova Companies Founder & CEO

For Everyone

For Real Estate Investors

A Phenomenal Debt Management Tool

A Tremendous Cash Flow Management Tool


Program Details

  • Available To:
    - Individual Accounts
    - Joint Accounts
    - Trust Accounts
    - Business Accounts

  • Investment Portfolio & Account(s):
    A client's Investment Portfolio may consist of one or multiple Accounts; however, only Non-Qualified Accounts are eligible for The Cash Advantage Program.

  • Minimum Size of Credit Line:
    A client's Investment Portfolio must be sufficient to generate at least a $25,000 Line of Credit.

  • Underwriting:
    Simple Application and Underwriting Process
    * Credit Score is included in Underwriting Process.

  • Movement of Funds:
    The Line of Credit can be linked to an existing Checking Account.

  • Minimum Draw: $1,000.00

  • Client Portal:
    An online Client Portal allows clients to stay on top of their loan status and personally manage their line of credit.

    AssetMark's eWealthManager Login Page
  • Loan Repayment:
    SBLOC principal balances have no set principal payment deadline and can be paid down at the client’s discretion with only a minimum monthly interest payment required.

  • Liquidity & Taxes:
    An SBLOC may help avoid the potential tax consequences of liquidating assets held within an Investment Portfolio.

  • The Advance Rates:
    The Advance Rates determine the size of the Line of Credit. The Advance Rates vary based on the types of investments that are held within the Investment Portfolio. Advance Rates are based on criteria such as, but not limited to: Asset Class, Price, Trading Volume, Concentration Limits, and Bond Rating. Changes in the composition of the Investment Portfolio can result in changes to the size of the Credit Line.

  • The Interest Rate:
    Interest Rates are based on the size of the Line of Credit, not the balance of the Investment Portfolio, and the rate floats based on the 1 Month Term Secured Overnight Financing Rate (SOFR). Rates for your Line of Credit will be determined and adjusted weekly based on the 1 Month Term SOFR Index.

    * The transition from 1 Month LIBOR to 1 Month SOFR took place in November
        of 2021.



    Supernova - Transition from 1 Month LIBOR to 1 Month SOFR

SBLOC Fees

  • No Monthly Fees

  • No Quarterly Fees

  • No Semiannual Fees

  • No Annual Fee


  • No Origination Fee | There is no cost to establish the line of credit.

  • No Ongoing Fees | There is no charge for the portion of the line of credit that is not in use.

  • While there are no fees associated with the establishment or use of a Securities-Backed Line Of Credit, it should be noted that there are fees associated with the management of the investment portfolio that is used as collateral to generate the line of credit.

Special Notes

  • An SBLOC cannot be used for the purchase of additional securities or to pay off a margin loan that was used to purchase securities. It is not a Margin Account.

  • It is always recommended that you consult a tax professional regarding potential tax implications involving your investment portfolio.

  • Securities-based lending has special risks and may not be suitable for everyone.*


Research Resources


  • Calculating your interest rate is easy. Simply add the current 1 Month Term SOFR (%) to your applicable Premium (%). The current 1 Month Term SOFR (%), which is a floating interest rate, can be obtained on CMEGroup.com and your applicable Premium can be obtained from the Cash Advantage Lending Investor Overview Brochure.


The Cash Advantage Program is an excellent solution for those that have a need for liquidity.
If you would like to begin a conversation about how The Cash Advantage Program can help you, Call Today!


We are always here to help in any way that we can.

Christopher M. Carrillo
Financial Advisor
(314)-724-0116

Helping You Transform Your Vision Into Your Reality



C.M. Carrillo Financial Advising and Prosperity Wealth Management, Inc. do not render tax or legal advice.

Investment Advisory Services offered through Prosperity Wealth Management, Inc., a Registered Investment Advisor. C.M. Carrillo Financial Advising and Prosperity Wealth Management, Inc. are separate entities.

C.M. Carrillo Financial Advising does not make any investment recommendations that pertain to real estate investments. We do not make recommendations to buy, sell, or hold real estate investments and we do not solicit or facilitate any such transactions. This policy specifically refers to the direct purchase or sale of real estate. However, when it is appropriate to include alternative investments in a client's investment portfolio, Real Estate Investment Trusts (REITs) may be utilized.

* Securities-backed loans may not be suitable for all loan parties (e.g., borrowers, pledgors, and guarantors) and carry a number of risks, including the risk of a market downturn, tax implications if pledged securities are liquidated, the potential increase in interest rates, and other risks. If the value of pledged securities drops below certain levels, loan parties may be required to pay down the loan and/or pledge additional securities. Please consider these risks and whether a securities-backed loan is appropriate before you proceed; carefully read the securities backed line of credit application and Line of Credit and Security Agreement for further details.