It started with a phone call

It started with a phone call.

One of our clients — a successful business owner we’d worked with for years — had just found his dream home. He needed $4 million quickly to make the purchase, but the plan was to replenish the funds shortly after closing.

His idea? “Let’s just sell 80% of my investment account. That should cover it.”

But we knew there was a better way.

The Hidden Cost of Speed

On the surface, the plan sounded logical. He had the funds in his $5 million portfolio, and the sale would only be temporary.

But as we walked through the details together, we uncovered several major issues hiding in plain sight:

• About $1 million of the portfolio was tied up in long-term capital gains.
• Selling would have triggered an estimated $250,000 in taxes.
• He’d be exiting the market at a time when equities were still climbing.
• Selling that much would unravel years of careful allocation and diversification.
• And over just three months, he’d lose out on compound growth.

This wasn’t a simple withdrawal — it was a costly disruption to a strategy built for the long haul.

The Better Question

So instead of asking, “How do I sell?” — we asked, “How do we access liquidity without liquidating?”

That’s when we introduced him to the Pledged Asset Line, or PAL.

Borrowing Smarter: The Pledged Asset Line

A Pledged Asset Line is a flexible line of credit secured by a non-retirement brokerage account. In this case, we worked with Charles Schwab to structure the solution.

Instead of selling anything, the client pledged his $5 million portfolio as collateral and immediately accessed $4 million — tax-free — at a competitive interest rate..

• ✅ No capital gains realized.
• ✅ No interruption to his investment plan.
• ✅ Full flexibility to repay once the home sale closed.

It was quick. Clean. And most importantly, aligned with his long-term goals.

What This Strategy Made Possible

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But beyond the numbers, the best part was what came next: He now had a new financial tool — not just for this purchase, but for future opportunities.

We started discussing how the PAL could support new business ventures, real estate investments, or other high-stakes moments where flexibility is critical and taxes can’t be ignored.

The Takeaway

When wealth is managed intentionally, you don’t have to choose between liquidity and long-term growth.

This wasn’t just a creative lending solution — it was planning in its purest form: smart, strategic, and forward-thinking.

If you're ever in a situation where selling seems like the only way, remember: There may be a better question — and a better answer.

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