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Being financially healthy isn't solely about saving and investing. The other side of the balance sheet includes borrowing money and managing debt. While these may not generate income for you, they can be important and powerful financial tools for your portfolio.
Sometimes it's a realistic strategy to borrow for your short-term financial needs.
For example, if you need cash for an emergency, such as a home repair, you shouldn't dip into your long-term investments. Holding onto investments for the long haul is an important cornerstone of our investment philosophy. If you haven't owned your investments long enough for growth opportunities, or the market isn't doing well, the last thing you want to do is pull your money out. Rather than selling your securities and taking a loss, you can apply for an Edward Jones personal line of credit, which allows you to borrow against your investments.
While borrowing can be a smart strategy for the short-term, carrying excessive debt should be avoided. We believe the most important thing you can do for yourself is be conscious of balancing your credit and liquidity to remain financially healthy.
Our Personal Line of Credit is a margin loan and is available only on certain types of accounts. Investing on margin or using a margin loan involves risk and is not appropriate for everyone. You can lose more funds than you deposit in the margin account. If the value of the securities in your margin account decline, you may be required to deposit cash or additional securities. In the event of a margin call, the firm can sell securities or other assets in your accounts and can do so without notice to you. You may not be entitled to choose which securities or other assets in your accounts are liquidated or sold to meet a margin call. The firm can increase its maintenance margin requirements at any time and/or not grant an extension of time on a margin call. Interest will begin to accrue from the date of the loan and be charged to the account.
Talk to your local Edward Jones advisor today to make sure your strategy is best positioned to help you reach your goals.