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Are you sure you are talking about a Line of Credit?
The Line of Credit allows you to “borrow” at low interest against your Portfolio Holdings (in your case Real Estate holdings) without have to sell anything and then pay 28%+ Capital Gains Tax. I’m familiar with this through my Financial Advisory, but we are not invested in Real Estate - so that might be different.
Bottom line is avoiding be forced to sell assets in order pay high Capital Gains on Assets that have already been Taxed when you acquired them.
It’s worked out between Bank, Lawyer, Financial Advisor & CPA — the Capital Gains Tax ( which is forced on anyone with substantial assets) is a killer. Trusts are often part of the deal & you have protected your family with the Insurance policy if something should happen to you.
A Bank Letter of Credit is usually use in Commercial transactions. Ordered goods have to be paid for normally before they can be sold. A Letter Of Credit “guarantees” payment.
Definitely a letter of credit. I have had many lines of credit before, so I do know the difference. And yes, this is all part of my irrevocable trust as I said before.
As I said, this is a thing. All you have to do is do some research or speak to someone who specializes in this . They seem to love to talk about it. They will tell you everything I am telling you here, and a whole lot more..
Definitely a letter of credit. I have had many lines of credit before, so I do know the difference. And yes, this is all part of my irrevocable trust as I said before.
As I said, this is a thing. All you have to do is do some research or speak to someone who specializes in this . They seem to love to talk about it. They will tell you everything I am telling you here, and a whole lot more..
That's why I asked - a Line of Credit verifies funds, basically as collateral
A Letter of Credit basically guarantees payment - which is what you indicated.
Markets never go straight up, nor do they go straight down. Rallies can happen in bear markets, killing the short sellers. If the trend continues through friday, this will be the first "up" week in eight weeks, breaking that record consecutive weekly downward trend. Further, we have had days where the market falls in the morning, only to gain back all its losses in the afternoon and vice/versa.
As I have said many times, it is impossible to predict the markets. Predictions usually make everyone look foolish.
The markets are still facing the strong headwinds of rising interest rates, inflation, lower corporate earnings, and an impending recession, all of which would tend to drive stocks lower.
One will have to be patient to see the full effects of the above and the impact they have on the markets.
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Quote:
Originally Posted by hawkeye2009
Indeed-
Markets never go straight up, nor do they go straight down. Rallies can happen in bear markets, killing the short sellers.
As I have said many times, it is impossible to predict the markets. Predictions usually make everyone look foolish.
The markets are still facing the strong headwinds of rising interest rates, inflation, lower corporate earnings, and an impending recession, all of which would tend to drive stocks lower.
One will have to be patient to see the full effects of the above and the impact they have on the markets.
It’s not impossible to predict. There are those who do it very well.
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