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Stock
to Cash
What
Are Some Typical Situations For Using The Program
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Investor who is bullish on
his own portfolio, or having a low cost basis needs liquidity
but does not wish to sell.
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Investor who understands the need for
life insurance, annuities, estate planning,
retirement planning or has other important financial goals,
but has insufficient cash flow to fund these objectives.
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Investor is concerned about the risk of
the market, he/she can immediately borrow
90%. Loan proceeds are reinvested into a guranteed instrument
such as a fixed annuity.
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Investor wants to set up a charitable
remainder trust (CRT), but does not want to relinguish the upside
potential of his stock portfolio.
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Investor wants to own real estate and
invest in the stock market at the same time. Investor can borrow
against stocks to purchase real estate or other startup venture.
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Investor receives company stock as a part
of a company retirement plan and do not wish to sell for either
emotional reasons, or if the plan qualifies for NUA (net unrealized
appreciation), the investor keeps his/her shares and is able
to diversify the portfolio at the same time. |
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What It Is:
In recent years the volatility of the stock market has produced
much uncertainty. Still for the savvy investors, long term growth
potential of stocks can be very attractive.
Stock to Cash will give the investor an opportunity to keep
a concentrated portfolio of stocks and at the same time diversify
into guaranteed fixed income products. This without having to
liquidate any of his/her positions in stock. The investor will therefore
still be able to participate in the upside of the stockmarket and
at the same time protect his/her invested capital against any downturns.
How
Does It Work:
Stock to Cash utilizes a unique 90% non callable and non recourse
loan structure. This means the investor receives 90% of the hedge
value of the portfolio upfront in cash without any further obligation
to repay either the loan principal or any interest that accrues
along the way.
At the end of what typically is a 3 year loan period, the investor
has the option to recover the shares used as collateral by paying
back the loan with accrued interest. Alternatively, the investor
may sell the shares to pay back the loan and keep the difference
in cash or shares, or refinance the loan and move forward with a
new transaction. In case the investor’s collateral portfolio
is worth less than what is owed for the loan, the investor always
have the right to default, forfeit the shares, and keep the 90%
cash that was received plus the appreciation thereof.
| If
the Stock Goes Up |
If
the Stock Goes Down |
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Pay back the loan |
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Walk away from the loan |
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Recover stocks |
> |
Pay no principal |
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Recover dividends |
> |
Pay no interest |
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Keep all appreciation |
> |
90% protected |
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Pay NO up front taxes |
> |
Keep reinvested assets and any upside growth |
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Have money working in two places at the any
upside growth same time |
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Have the opportunity to carve out another 90%
non recourse loan |
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Order
your
free report
today.
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