Few people look forward to filing their tax returns – especially if you owe the IRS money and aren’t sure where you’ll get the cash. If you find yourself in this position, you might wonder if you should borrow the money or sell some of your investments. Wealthfront’s Portfolio Line of Credit (which is available to all Wealthfront clients with at least $25,000 in their taxable Investment Account) is a great option when you need cash quickly and don’t want to sell your investments.
With a Portfolio Line of Credit, you can quickly and easily borrow up to 30% of the value of your Investment Account without disrupting your investing strategy. It also comes with an interest rate that’s much lower than what traditional banks offer on loans, and you can pay it back on your own schedule. We recommend using it as a bridge between paychecks or even jobs when you don’t have the money you need now, but you will soon.
Our Portfolio Line of Credit is especially popular at tax time. Here, we’ll look at why it’s such a valuable tool.