Sample Plan - Free Financial Plan by Anasova - Report - Page 12

You indicated that you have an upcoming purchase for Bathroom for $5,000.
You can borrow up to $38,000 on a wealth management line of credit
Your monthly payment for Bathroom for $5,000 would be $13, with no required monthly payment
See details below.
Lowest cost borrowing
Ana all of your borrowing, outside of a mortgage, up to $38,000 should be through a wealth management loan.
Why a wealth management loan?
Because you get the best terms and the best rates.
Rates: Generally under 3%
You have access to borrowing at less than 2%, tax deductible. I have tagged resources for you at the
end of the report.
Terms: Interest only, no required monthly payment (as long as the loan is in good standing)
Example with your next car:
$40,000 car x 3% /12 = $100 per month
No required monthly payment.
Unlike, for example, a 0% car loan, you can pay any amount of principal or interest, any time. You are the one in
control. You can use this for anything: Home improvement / art / jewelry / horse / boat / car / "toy". (Note some loans
prohibit you from buying additional securities as the only restriction).
If you use a wealth management loan, you must keep your borrowing within the guardrails. The guardrails are:
1. Your portfolio must be diversi ed (what I recommended earlier counts).
2. You must never borrow more than 30% loan-to-value.
3. You may not borrow against IRA's. This is why it is essential to build up your non-IRA money, so you can
release the ability to borrow at these rates and terms.
So we are on the same page, here is an example of loan-to-value. If you own $125,000 in Vanguard Total World Stock
Index and are borrowing $38,000, your loan of $38,000 / $125,000 = 30% loan-to-value. While you are able to borrow
more, you should not borrow more.
What about repayment?
The simple approach is to "act as if" it was another form of loan and pay it down over a reasonable period of
time.
The advanced approach is to direct what you would have been making as a payment to your investments,
building up more assets.
If any of this is new or complicated, I can help!
Additional disclosures and important information at the end of this report and in the Terms of Use. This information is intended to
encourage thoughtful and rigorous debate with your professional advisors as it pertains to your own unique circumstances.
Key opportunity
© Anasova 2020. All rights reserved.
Terms of Use included in their entirety. Contact Us.
See important notes and disclaimers at the end of this report.

Paperturn flipbook viewer