What Your Advisor Should Tell You About Margin Loans

Lucas and Luna explain how margin loans work, when they make sense, and the risks that many advisors gloss over. They walk through a concrete example: using a $500,000 portfolio to borrow $150,000 at a variable rate tied to SOFR plus 1.5 percent, and what happens if the market drops 30 percent. They also discuss the tax angle — margin interest is deductible only if used to buy taxable investments — and why a margin call can force you to sell at the worst possible time. If you've ever wondered whether borrowing against your portfolio is a smart move, this episode gives you the questions to ask your advisor before signing the agreement. #MarginLoans #PortfolioLeverage #FinancialAdvisor #FiduciaryDuty #BorrowingAgainstPortfolio #SOFR #TaxDeduction #MarginCall #Liquidity #RiskManagement #Investing #PersonalFinance #WealthManagement #AdvisorTransparency #Finance #FexingoBusiness #BusinessPodcast #TheFinancialAdvisorPodcast Keep every episode free: buymeacoffee.com/fexingo