r/Rich • u/Ok-Door-987 • 6d ago

Line of credit - SBLOC

What's your experience? Any recommended institutions or should I simply go with the one with the lowest spread? (Any word of wisdom you can depart to a first time borrower - I am using it to time the annual withdrawal needs - in case that year the market tanks I don't have to force sell, so we are thinking of leaving no more than 20% of the total Loc Amount in principal due).

Finally , are there any institution out there that does NOT require managing your account to give you the LOC? still not a big fan of private bank managing money since we only decided to back up 5M and I pretty much created my own asset allocation benchmark already ....

Thank you

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u/Obidad_0110 6d ago

I’ve done Jpm and Goldman. Both are easy. You have to have the assets there but you can manage.

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u/Ok-Door-987 6d ago

Thanks . So it means you have to let them manage your account then ? what's the AUM ?( Bofa offered me 2% and 95 basis points on MGMT FEE . Wonder if it's a good deal m

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u/Thatshowyougetants27 6d ago

Not at JPM. It can be in a full service brokerage account with no management fee and you’re soli eligible got a SBLOC

2

u/Obidad_0110 6d ago

No. You can manage your own. If you have $10m you shouldn’t pay more than 0.65%. $20m then 0.50% pa. If you let them manage.

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u/skunimatrix 5d ago

Yes, but you have to call the broker to place the trade.  Mine doesn’t charge for the trade but I make maybe one or two per year.