As a full-service wealth management firm, we provide services for our clients beyond financial planning and investment management. Often times we will assist clients with their banking needs, including loans and lines of credit. One of the most popular options for our clients’ lending needs is the Schwab Bank Pledged Asset Line® (PAL), offered through Charles Schwab Bank.
A Pledged Asset Line from Schwab Bank is simply a flexible, non-purpose line of credit that lets you leverage the value of your portfolio. Secured by assets held in a Schwab account, you can use your line of credit to access the funds you need while keeping your account fully invested.
While we would never encourage our clients to leverage their account just because you can, sometimes credit is necessary and just plain smart in the right situation. And if we can help facilitate a prudent, competitive solution for you then we are doing our job as fiduciary advisors.
For clients with brokerage accounts at Schwab, establishing a PAL is a relatively simple and straight-forward process. We do as much of the heavy lifting as possible, which greatly reduces any time our clients have to spend on setting this up.
This flexible line of credit can be used for a wide range of financial needs, including but not limited to:
The rates are very affordable and are based on 1-month LIBOR. Although we cannot guarantee anything, we have been able to successfully negotiate lower rates for our clients in most cases.
To access the Schwab Bank Pledged Asset Line® Fact Sheet click here.
If you decide this may be a viable solution for your lending and credit needs, please contact us to discuss the details and next steps.
*Credit lines may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account. And retirement accounts are not eligible.