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Did you know that liquidity is an important factor in your financial portfolio?

Having liquid assets can help you pay off your short-term liabilities and debts and help you meet your financial obligations as they come due. While many people know about liquidity when it comes to paying for tax obligations, there are some non-tax situations in which having access to liquid assets can be important.

Liquid assets can be beneficial for:

  • Travel
  • Home renovation
  • Real estate purchase
  • College expenses
  • Debt consolidation
  • Family emergency
  • Tax payment
  • Personal goals
  • Bridge loan
  • Car/boat purchases

Meet Elaine and Mark

Elaine and Mark have been dreaming about renovating their home for years, and they feel like the time is right to start. They’ve set a budget of $200,000, but when it comes to funding the project they keep running into issues. They had planned to use a home equity line of credit (HELOC) to pay for the renovation, but they realized that HELOCs and personal loans have drawbacks — higher interest rates, lending limitations, added fees — not to mention the time it takes to secure the loan. They’re afraid that they may have to push their dream of a home renovation to the side.

They decide to talk with their financial professional about the possibility of liquidating some of the assets from their non-retirement brokerage account. The financial professional reminds them of potential tax obligations and capital gains taxes they could be facing by making that decision. He then suggests another option.

Nationwide offers a solution that may help meet your liquidity needs

Nationwide Smart CreditSM is a securities-backed line of credit (SBLOC) that works as an alternative to liquidating assets when you need cash. It is a revolving line of credit secured by your non-retirement investment assets. It lets you borrow against the value of your portfolio without disrupting the investment strategy that you and your financial professional have carefully developed.

Why should you choose Smart Credit?

  • Smart Credit is not taxable when opened or used
  • There are no account opening fees, annual fees or prepayment fees
  • The term is indefinite, so it can be paid back whenever it is most convenient

Potential risks of an SBLOC

Nationwide Smart Credit still contains risk you should know about. 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.

Talk with your financial professional about Nationwide Smart Credit and how it may help your financial portfolio.

Neither Nationwide nor its representatives give legal or tax advice. Please have your clients consult with their attorney or tax advisor for answers to their specific tax questions.

The purpose of a Nationwide Smart Credit securities-backed 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; (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 12/31/2023. Maryland: License Number 03-2423. Oregon: License number 1804109. Rhode Island: Rhode Island Licensed Lender. Washington: License number CL-1804109.

Not available in Mississippi, Montana, Nevada, and Vermont.

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Nationwide SBL, LLC dba Nationwide Smart Credit (NMLS): 1804109 NMLS Consumer Access:

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