Many people consider liquidating assets when faced with a tax obligation, yet this may trigger even more taxes in the form of capital gains.

A Nationwide Smart CreditSM line of credit may provide an intelligent alternative. It is a securities-backed line that allows you to borrow against your non-retirement portfolio. By using your assets as collateral, you can access the cash you need without disrupting your investment strategy.
Image of a corner of a 1040 tax return with a pair of glasses, a paper clip, a binder clip and a pen sitting next to it.
Compare: Nationwide Smart Credit vs. Asset liquidation
Borrowing with Nationwide Smart Credit Liquidating assets
You can borrow a portion of the value of your portfolio for personal purposes. Selling securities could result in negative tax consequences.1
Your portfolio remains intact and maintains its growth potential. At a time when you’re already concerned about a tax liability, you may face a capital gains tax.1
You can quickly access funds; new lines can be originated in hours.2 The long-term performance of your portfolio could be affected.

What can I do with Nationwide Smart Credit?

Because you can use Nationwide Smart Credit to fund anything except buying additional securities or paying back an existing margin loan, the possibilities are nearly endless:

Family

  • College expenses
  • Weddings
  • Gifts
  • Family emergencies

Personal

  • Medical expenses
  • Personal goals
  • Distributions (during a down market)
  • Charitable contributions

Real estate

  • Home renovation
  • Real estate purchase
  • Bridge loan

Lifestyle

  • Car/boat/RV
  • Vacations
  • Luxury items
  • Cash

Financial

  • Tax payment
  • Debt consolidation
  • IRA conversions

Other

There when you need it

You can open a line of credit with no upfront fees and no annual fees. Even if you don’t need funds now, opening a line of credit allows you to easily and quickly have access when the need arises. It’s there when you need it, giving you peace of mind. Plus, there is no rigid repayment schedule.

Things to consider

Nationwide Smart Credit lines carry risks. If the value of your portfolio falls below a certain level, you may be required to provide additional securities as collateral or cash to immediately pay down part of the line. If that’s not possible, some investments may be liquidated, resulting in potential tax consequences.

The risks include, but are not limited to, the fact that the lender may:

  • Suspend and/or terminate your line of credit
  • Declare all indebtedness immediately due and payable
  • Sell any collateral in order to maintain the line-to-value requirement3
  • Require additional collateral from you in order to meet the line-to-value requirement
  • Require you to pay down the principal in order to meet the line-to-value requirement
Nationwide® is here to help.
To learn more about securities-backed lending, visit nationwide.com/sbl

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[1] Please consult your tax advisor for any tax implications.
[2] The speedy origination applies only if the custodian allows for e-signature on the control agreement and processes the agreement in a timely way. 
[3] The maximum line of credit is based on the securities pledged.

Representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.

The purpose of a Nationwide Smart Credit line of credit must be for personal, family or household purposes and not for securities investments or to purchase or carry margin securities, which include: (1) stocks that are registered on a national securities exchange, or any over-the-counter security designated for trading in the national market system; (2) debt securities (bonds) that are convertible into margin stock; and (3) shares of most mutual funds.

California: Loans made or arranged pursuant to a California Lenders Law License. Delaware: Nationwide SBL is licensed by the Delaware State Bank CCL commissioner to engage in business in this State under license number 035414, expires 12/31/2025. Maryland: License Number 1804109. Missouri: Consumer Credit Loan Company registered by the Missouri Division of Finance, license number 367-25-8932. Oregon: License number 1804109. Rhode Island: Rhode Island Licensed Lender. Washington: License number CL-1804109. Click here for state license information and rate and fee disclosures.

Not available in Mississippi, Nevada, and Vermont.

Nationwide, the Nationwide N and Eagle, Nationwide Smart Credit and Nationwide is On Your Side are service marks of Nationwide Mutual Insurance Company.
Nationwide SBL, LLC dba Nationwide Smart Credit (NMLS): 1804109 NMLS Consumer Access: https://www.nmlsconsumeraccess.org/
NFW-11097AO.3