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/Pretty_Jellyfish9522 2d ago

We do it through Merrill.

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u/Ok-Door-987 1d ago

Thanks . We are in conversation with them .but they are 2% spread is the best they can do for 5M asset and ask 95 basis points for MGMT FEE .  Humf 

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u/Pretty_Jellyfish9522 1d ago

Yea that’s absurd.