Why do the Wealthy Borrow?

More than any other segment of the population, the wealthy understand the power of leverage in today’s environment. Borrowing against an investment portfolio not only has the possibility of boosting returns, but it can also provide liquidity in a tax-efficient way. With relatively low current interest rates, investors may want to consider borrowing against their investment portfolios to fund major purchases and improve investment returns. Margin loans and non-purpose lines of credit are two effective ways to do this.