Intro to SBLOCs

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How to Do an SBLOC at Interactive Brokers ▶️ • How to do an SBLOC at ...
Learn about how to use a securities-backed line of credit (SBLOC) to double invest the same money.
Buy, Borrow, Die Tax Strategy course - taxplanninghq.com/buy-borrow-...
Buy, Borrow, Die Strategy video - • Never Pay Taxes Again ...
Interactive Brokers - www.interactivebrokers.com/
⚠️ Exercise caution before using this strategy. Do your own research and make sure you fully understand the risks you are undertaking!
💡 I do not work with clients or offer any consulting services. If you want to learn more about the best tax and investment strategies, subscribe to my channel and check out these courses ▶️ sharonwinsmith.com/courses/
The information provided in this video is owned by Winsmith Tax LLC and is solely for informational and educational purposes. It is not intended as investment, legal, or financial advice. Always consult with a professional familiar with your unique situation, or conduct your own research before making any decisions. We might receive commissions for recommending certain products or services.

Опубликовано:

27 июн 2023

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Комментарии : 80

@sharonwinsmith 10 месяцев назад

How to Do an SBLOC at IBKR ▶ ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I098YVVPKNg.html

@markschwarz3124 Год назад

Excellent content. Please keep these coming! This compressed 6 months of "be your own bank" learning into 15 min.

@sharonwinsmith Год назад

Thank you for watching! :)

@mjs28s 2 месяца назад

You can also call your broker and negotiate your margin rate. I haven't paid close to the marketed rate at schwab for over a decade now.

@JB23669 9 месяцев назад

You're a really helpful RU-vidr with real world experience thank you!

@sharonwinsmith 9 месяцев назад

Thank you for watching!

@mohanbhupathiraju9421 Год назад

Great Insights which you dont normally find. Wonderful video Sharon ! thank you.

@sharonwinsmith Год назад

Thank you for your kind words and for watching!

@alihalabi222 Год назад

I'm loving your videos. Please keep them coming. 🙏🏼🙏🏼

@sharonwinsmith Год назад

Thank you for watching!

@yopyop5546 6 месяцев назад

Amazing video. Cant wait to build intergenerational wealth. Thank you, truly

@sharonwinsmith 6 месяцев назад

Thank you! 😁

@yopyop5546 6 месяцев назад

I've done well enough to invest this way and live this way now. Thank you for this video. Sucking in all this information before I jump in. Subbed

@sharonwinsmith 6 месяцев назад

Thank you - welcome aboard!

@onceappuonatime 4 месяца назад

thank you for your contribution to the betterment of society!

@sharonwinsmith 4 месяца назад

Thank you for watching!

@Ingeniouz81 8 часов назад

As far as a margin call, your real estate investment would have to drop significantly at least 55% to trigger a margin call at 25% maintenance margin.

@BPM461 4 месяца назад

I've been looking for a specific example like this. Thank you

@sharonwinsmith 4 месяца назад

Thank you for watching!

@robertg1556 10 месяцев назад

Thanks so much for this information. You make it easy for a Layman to understand.

@sharonwinsmith 10 месяцев назад

Thank you for your kind words! 😀

@robertg1556 10 месяцев назад

@@sharonwinsmith My pleasure

@ismaelhall3990 Месяц назад

insightful

@leftygun 3 месяца назад

Just completed your Buy,Borrow Die course. As a layman I found it incredibly easy to understand. Best money I've ever spent. Thank you Sharon!

@sharonwinsmith 2 месяца назад

Thank you so much for your kind words! Glad you enjoyed the course 😁

@KBdivs 11 месяцев назад

Love it, great channel. Keep it going 🫡

@sharonwinsmith 11 месяцев назад

Thank you so much for your kind words! 🙂

@BornRiders 5 месяцев назад

Sharon, great scenario content on the SBLOC video. Could you do a video on which Real Estate Funds to invest into?

@sharonwinsmith 5 месяцев назад

Thank you - I would start with this video ▶️ ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-JBJTOXRb-1s.html

@Ingeniouz81 9 часов назад

Question: Why not just use a regular margin loan and accomplish the same thing? Also, from my understanding SBLOCs are for other types of investments beside securities. Right? I dont know, just asking.

@ericmed 3 месяца назад

I think the real play will be leveraging lines of credit against Bitcoin -- once the space evolves a bit more. 99% will be mined by 2030 but the following 1% will take 110 additional years causing a bit of an exponential curve and the ability to take a higher frequency of credit lines against it.

@sharonwinsmith 3 месяца назад

Completely agree and I look forward to when Bitcoin and perhaps some others get to that point. Though I do think we are many years away from that point.

@qwelve5848 9 месяцев назад

If the point of the strategy is to leverage your existing assets to purchase more assets, then how do you service the interest payments without selling off the new or old assets? Earned incomed? Incoming producing real estate? Dividens from other assets?

@CasperWest 4 месяца назад

It depends… if you are still employed, single, married etc… but overall you can use your cash whether from your bank or gains.

@flavioleonin8598 4 месяца назад

Great job on all your videos. I have a biotech stock that's done well recently can I do an SBLOC on this one stock?

@sharonwinsmith 4 месяца назад

Thanks! You technically can do an SBLOC against any publicly traded stock. However, I would never do one against one single stock like you mentioned. This can be extremely risky and get you in a lot of trouble like John Foley - Peloton founder. I think best practices are doing SBLOCs against S&P 500 index funds and safe large cap stocks.

@CasperWest 4 месяца назад

Love this video!! If I transfer my brokerage to IKBR from E*Trade then take out SBLOC at IKBR. I can’t transfer back to E*trade until I pay off the loan?

@sharonwinsmith 4 месяца назад

That is correct

@CasperWest 4 месяца назад

@@sharonwinsmith thank you so much - love your channel ! 👍

@dee24298 8 месяцев назад

Can i borrow against index fund investments in my portfolio?

@sharonwinsmith 8 месяцев назад

Yes - you can take an SBLOC against index funds.

@JB23669 9 месяцев назад

Honest question what's your net worth? I'm asking cuz half these finance gurus are talking about how to invest make money when they don't even have results to show. Like getting fitness tips from someone out of shape

@sharonwinsmith 9 месяцев назад

That's a really smart question. However, I prefer not to disclose my net worth publicly. I guess you will have to bank on the fact that you'll never see any pictures of ridiculous sports cars anywhere on my channel. That should probably offer a pretty good hint.

@theaboveaveragejoe 8 месяцев назад

Where did you get $220,000 earlier in the video? I'm trying to figure the math out.

@MarcioSouza1 Месяц назад

160 (from stock gains) + 100 (from real estate) - 40 (interest) = 220 total gain

@Phoenixmacmaster 11 месяцев назад

Where do you search and find high quality real estate funds that are paying 10%+?

@sharonwinsmith 11 месяцев назад

I think this is one of the best questions to be asking. Finding a way to get in touch with quality real estate, private equity, VC, etc. fund sponsors was a gamechanger for me. I cover my personal approach to finding good deal flow in my Investment Tax Strategies course - taxplanninghq.com/investment-tax-strategies/

@vermoidvermoid7124 5 месяцев назад

Interest on sbloc is paid to ourselves? How does that work? Does this mean say 3k Interest is paid on the sbloc, does this 3k go into my account?

@sharonwinsmith 5 месяцев назад

Interest on an SBLOC is paid to the brokerage firm you are borrowing from.

@vermoidvermoid7124 5 месяцев назад

Ofcourse. Thats how they make money. Thats what i thought but i kept seeing videos where ppl claimed that you essentially paying yourself. Which we are but not the interest.

@pilosopotasyo5043 5 месяцев назад

do i need an llc for this?

@sharonwinsmith 5 месяцев назад

You don't need an LLC to do an SBLOC. However, many high net worth investors prefer to use the WY LLC for passive investments but that is not specific to the SBLOC strategy.

@kymandjamesshh 10 месяцев назад

How many years is this

@sharonwinsmith 10 месяцев назад

SBLOCs can usually be used indefinitely

@kf434 11 месяцев назад

@sharonwinsmith- good video. What’s your take on the strategy of never paying back the margin loan, and just let it keep growing with interest. This is what the rich do, and allows you to keep more cash in investments . ( as long as the portfolio grows enough to keep it at least 50% above the loan amount )

@sharonwinsmith 11 месяцев назад

Thank you! I never pay down the balance of the SBLOC. You are right that it is the strategy the wealthy do. I like to keep as close to 100% of my money invested at all times as possible.

@kf434 11 месяцев назад

@@sharonwinsmith - Follow up question - for retirees, if the portfolio is big enough, do you recommend using margin for all your living expenses, and not paying down any margin, and instead use the income from the portfolio’s high yield dividends to reinvest for the compounding effect ? ( as long as the portfolio stays ahead of the margin balance by 50%). ?

@giulianaw 3 месяца назад

Why should I take an SBLOC instead of a cash out?

@sharonwinsmith 3 месяца назад

Because you would pay tax on the gain and lose out on any future appreciation in the shares.

@WtfReal Год назад

Do you pay back the principle you borrowed?

@sharonwinsmith Год назад

Yes, you are on the hook for the principal. However, usually you can defer principal payments indefinitely and only pay interest currently.

@WtfReal Год назад

@@sharonwinsmith indefinitely!? thats actually crazy

@jackieboy1593 11 месяцев назад

It is crazy, but at the same time, these are floating interest rates. When rates are high like now, it's best to accelerate the payment period to avoid paying too much interest.

@jjohn662 2 месяца назад

How about putting an SBLOC on a $2M ROTH? Is that possible?

@MR2trader Месяц назад

Banks don't allow borrowing against qualified accounts

@jjohn662 Месяц назад

@@MR2trader can you think of any hacks that can get it done, that you can get to use the cash, but it can still stay in play?, and it’s still growing tax free in the Roth?

@jjohn662 Месяц назад

@@MR2trader how about this for a hack? You have some other big asset. For simplicity sake, you have a primary home with a bunch of equity in it. Put a HELOC on it. Then you use the mega Roth to earn the payments for the HELOC. The mega Roth should make enough tax free to service the debt . You’re leaving the mega Roth in the market to continue to work. You use the HELOC money to pursue whatever other investment that you’re interested in that makes a return also. Perhaps cash flow real estate. Worst case, you could still liquidate the Roth to take care of the HELOC in a pinch. Thoughts?

@davecirelli2902 7 месяцев назад

Is it possible to get an SBLOC and purchase a rental property in Italy and then use the interest as a tax deduction?

@sharonwinsmith 6 месяцев назад

From a U.S. tax perspective, you should be able to get a deduction for the interest for your Italian rental property on your U.S. tax return. If you are asking as an Italian resident, I'm not super familiar with Italian tax law so wouldn't want to comment on that.

@davecirelli2902 6 месяцев назад

@@sharonwinsmith This really is useful information, thank you so much!

@sharonwinsmith 6 месяцев назад

Thanks for watching!

@davidmmiller7 11 месяцев назад

How do you compare the risk of this strategy to simply investing the original $2MM in a higher return / higher risk fund, say with an expected return of also 11%

@sharonwinsmith 11 месяцев назад

It would depend on a lot of factors. If someone knows what they are doing and are a savvy investor, I personally don't think the SBLOC strategy is risky. However, easy to see how one could get themselves into trouble if they engage in stock picking, short-term trades, small cap stocks, etc.

@JB23669 9 месяцев назад

Where are you even seeing 4% interest rates on SBLOC?? Before you even say "at the time of this recording" no interest rates were even higher few months ago. 4% rates were 2021 era. You're talking 8% cuz it's based on SOFR. Also you're sayin you used conservative estimates on this... lol no these are just inaccurate estimates Edit: didn’t realize Interactive brokers was beating the competition that much!! I was wrong

@sharonwinsmith 9 месяцев назад

This is wrong. It is not always based on SOFR. I am not currently paying 8% on my SBLOC. I am paying less than 7% right now. Not sure where you are getting your rates from but this is inaccurate information. I was paying less than 4% at the time of recording that video.

@JB23669 9 месяцев назад

@@sharonwinsmith I apologize if I was wrong on this. I was going off what I saw at Schwab and chase. I had no idea you’re able to get under 7% still rn. Is that thru interactive brokers? Apologies again for the misunderstanding I did not mean for it to come off aggressively! Hope you have a beautiful day thanks for the amazing content!

@MR2trader Месяц назад

FYI I'm paying 4.5% on my IUL policy loan fo ar syndication investment.