The Cash Advantage Program
Cost Effective Liquidity Liquidity with Tax Benefits | Cash Flow Flexibility Avoid Amortization |
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 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.
Uses May Include
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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."
The Players
The Asset & Wealth Management Firm |
The Custodian |
The Lender |
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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
Auto Purchases Personal & Commercial
| Real Estate Investing Home Flippers | Landlords | Private Lenders | Hard Money Lenders
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Debt Management A Phenomenal Debt Management Tool
| Cash Flow Management A Tremendous Cash Flow Management Tool
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The Cash Advantage Program makes it possible to strategically manage both sides of the Balance Sheet.
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Program Details
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Calculating your interest rate is easy. Simply add the current 1 Month SOFR (%) to your applicable Premium (%).
The current 1 Month SOFR, which is a floating interest rate that fluctuates daily, can be obtained on CMEGroup.com.
Your applicable Premium can be obtained from the Cash Advantage Lending Investor Overview.
Research Resources
Understanding The Yield Curve
The Cash Advantage Program is designed to provide Cost Effective Liquidity. Understanding the Yield
Curve can provide context when it comes to The Cash Advantage Program's interest rate structure.
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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.