In today's radio broadcast, Matt and I discuss two major topics: I-Bonds and Pledged Asset Line of Credit.
I-Bonds are issued by the US Government directly on https://www.treasurydirect.gov/tdhome.htm (TreasuryDirect.gov.) While you can only purchase $10k in a single year, the current yield is over 7%! This could be a good place to park part of your emergency savings and get a good return, however https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ifaq.htm#cash (be aware of the fine print which includes:)
You can only purchase $10k each year.
The interest rate (yield) does change every 6 months.
You must hold them for at least 12 months time.
If you cash them in prior to holding for 5 years, you lose the last 3 months of interest.
On the flipside, if you are looking to borrow money, you might qualify for a loan against your investable portfolio. If you have accounts at brokerages such as E*Trade or Charles Schwab, they offer a line of credit with low rates. This is very similar to a Home Equity Line of Credit (HELOC) as an interest-only loan. You can potentially negotiate these rates if you give them a call (or perhaps threaten to take your money to another brokerage🤫).
These are two tools in the kit that might apply to your financial situation.
Find out more about Mike athttps://www.mortonfinancialadvice.com/ ( https://www.mortonfinancialadvice.com) and connect athttps://www.linkedin.com/in/mwsmorton/ ( https://www.linkedin.com/in/mwsmorton/)