Through Our Lending Partners
Access Liquidity Without Selling Your Portfolio.
When you need cash but would rather not unwind a long-term investment strategy, a securities-backed line of credit may be worth a look. We can refer you to lending partners available through our broker-dealer who focus on this kind of borrowing.
A securities-backed line of credit lets you borrow against the value of eligible non-retirement investments without selling them, which may help you avoid realizing capital gains and keep your long-term strategy in place. Tierney Wealth does not lend money, hold deposits, or make lending decisions. What we can do is help you weigh whether this kind of borrowing fits your broader plan and, when it does, refer you to securities-backed lending programs available through our broker-dealer’s lending partners. The lender sets the terms, makes the credit decisions, and manages the line directly with you.
Securities, investment advisory, and wealth management services are offered through MML Investors Services, LLC, Member SIPC. MML Investors Services is not a lender, does not make decisions about loans, and does not endorse, recommend, or provide advice on any particular lenders or loan products offered through third-party lenders.
Why Clients Consider Securities-Backed Lending
Keep Your Strategy Intact
Borrowing against eligible investments instead of selling them may allow your portfolio to stay invested, so it can continue to participate in potential dividends, interest, and long-term growth.
Potential Tax Efficiency
Because a line of credit does not require selling assets, it may help you avoid realizing the capital gains a sale would trigger. Whether that benefit applies depends on your specific holdings and tax situation, which we can help you think through alongside your tax advisor.
Flexible Access to Cash
These lines are generally revolving, so funds can be borrowed, repaid, and re-borrowed for needs such as real estate, tax obligations, family events, or bridge financing. Borrowed funds typically cannot be used to purchase or carry additional securities.
Coordinated With Your Plan
Borrowing is a balance-sheet decision. We can help you weigh how a line of credit fits with your investment strategy, liquidity needs, and overall risk before you decide whether to pursue one.
Borrowing against securities is not suitable for everyone and carries risk. If the value of pledged securities falls below required levels, the lender may require you to add collateral, pay down the loan, or sell securities to meet collateral requirements, possibly with little or no advance notice and at unfavorable prices. A forced sale may create tax consequences. Interest rates are typically variable and may rise. The lender may demand repayment or terminate the line. These programs may not be available in all states. Tierney Wealth does not provide legal or tax advice; please consult your own advisors regarding your situation.
“Borrowing is a tool. Like any tool, its value depends entirely on how it is used.”
Tierney Wealth
What It Can Fund
Common Uses
Clients generally use these lines for personal, family, or household needs. They cannot be used to purchase or carry securities or to repay a margin loan.
Real Estate & Home
Bridge financing, a property purchase, or home improvements while a longer-term mortgage is arranged.
Taxes & Liquidity
Covering a tax obligation or a short-term liquidity need without selling investments at an inopportune time.
Family & Education
Education costs, family events, or support for the next generation, funded without disrupting your portfolio.
Business & Bridge Needs
Working capital, an acquisition, or bridge financing for time-sensitive opportunities.
Borrowing vs Selling
How to Weigh Borrowing Against Selling
Both paths free up cash, and each carries different trade-offs we can help you think through.
Selling investments
Selling may realize capital gains, create a tax bill, and end the long-term compounding on the shares you sell. Once sold, those holdings no longer participate in potential future growth.
Borrowing against investments
A line of credit may keep your portfolio invested and avoid a sale, but it adds interest cost, a typically variable rate, and the risk of a collateral call if markets decline.
How It Works
How the Referral Works
We stay involved as your advisor while the lender handles the credit relationship directly.
We Review Fit
We look at whether borrowing against your portfolio makes sense given your goals, your time horizon, and the trade-offs versus selling assets or using other financing.
We Make an Introduction
If a securities-backed line looks like a fit, we introduce you to a lending partner available through our broker-dealer. We are not the lender and do not make the credit decision.
The Lender Sets Terms
The lender reviews your eligible collateral and sets the line amount, pricing, and terms, then handles origination through its own platform. Pricing is generally a variable rate tied to a benchmark such as SOFR (Secured Overnight Financing Rate) plus a spread.
We Coordinate With Your Plan
As the line is used, we can help you monitor how the borrowing interacts with your investment strategy, including the risk of a collateral call if markets decline.
What This Is Not
We want to be clear about the boundaries of this referral.
- What we don't do:
Tierney Wealth is not a lender and does not make loan or credit decisions.
- What we don't do:
We do not hold deposits or originate, service, or back any line of credit.
- What we don't do:
The lending partner sets all terms, rates, and eligibility, and manages the line directly with you.
- What we don't do:
A securities-backed line is not right for every client, and borrowing is never required to work with us.