As April approaches, many HNWIs and business owners face a common dilemma: a significant tax liability coupled with a desire not to disturb high-performing investment portfolios. Liquidating securities to pay taxes triggers a taxable event in itself—capital gains—creating a cycle of inefficiency. Furthermore, selling assets in a down market just to generate cash is a violation of basic investment strategy.
A luxury asset loan serves as an ideal bridge solution for tax season. By borrowing against your luxury assets, you generate the necessary cash to meet your tax obligations immediately. This allows your primary investment portfolio to remain intact, continuing to compound and grow.
Because Borro loans are short-term and can be repaid at any time without prepayment penalties, they are perfectly suited for bridging the gap between a tax bill and an expected liquidity event, such as a bonus, a business distribution, or a real estate closing later in the year.
Smart wealth management is about options. Do not let tax season force your hand into selling assets you want to keep. Use your luxury goods to bridge the gap efficiently.
