Sequence of Returns Risk: Leveraging Loans to Protect Your Portfolio

In this episode of Sequence of Returns Risk, Jake Carson and Lily Morgan tackle a strategic question about mitigating the risk of selling investments at a loss during market downturns. Our listener suggests using a home equity loan or margin loan to cover expenses when the market is down, instead of selling shares at depressed prices. We explore the pros and cons of tapping into a home equity loan at 7%, the potential advantages of using margin loans tied to a brokerage account, and the long-term risks and benefits of this approach. If you’re concerned about sequence of returns risk and want to explore creative strategies for managing downturns, join us to discuss how to leverage debt wisely while protecting your portfolio.