Entrepreneur Aligned Podcast

Using Other People's Money - How Investment Credit Lines and Margin Work


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People are always risk-averse by nature. So we tend to veer away from those financing options that pose greater risks and stay on the safer, less-riskier ones even if it means limiting our lending options. However, if you equip yourself with the right knowledge and understanding of these unconventional lending options, you’re giving yourself the leading edge advantage that most people don’t have.

In this episode, we cover two areas of non-traditional financing: Investment Credit Lines and Margin. Both of these are types of borrowing secured against your liquid financial assets. Even better, the conventional wisdom is that you should never add leverage to investing and why this doesn't apply to specific cases.

Learn how you can better address your short-term cash needs by tuning in to this episode!

Resources:

 

  • Destiny Capital (https://www.destinycapital.com)

What’s Discussed in This Episode:

  1. All assets are fungible [01:29]
    • Why you need to use your ICL [06:23]
  2. How to utilize the Investment Credit Line [03:09]
  3. What is an Investment Margin and how can you use it? [08:26]
  4. Going against the conventional wisdom [13:01]

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Entrepreneur Aligned PodcastBy Entrepreneur Aligned

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