BANKING & CREDIT MANAGEMENT – Family

Credit can be viewed in many ways – Pulse is prepared to help you pair your unique view with specific solutions in order to help increase your financial prosperity. For whatever you prefer, Pulse has a plan!

COMMON ISSUES
1.  You or your spouse may not view credit or leverage as a financial tool, instead desiring to avoid/eliminate credit.
2.  You may have forgotten to coordinate credit management with investment management.
3.   You may not know how to use credit to smooth cash flow crunches.

COMMON SOLUTIONS
1.  Pulse is willing to listen! While it is generally considered ill advised to pay down debt (especially tax-deductible interest debt) rather than invest the proceeds, you and your spouse might struggle with the thought of debt. Pulse will listen to your concerns without adding pressures to make any decisions outside of your comfort level.
2.  Pulse will help you create a source and “use of funds” budget to help you evaluate how to allocate your dollars.
3.  Pulse can help you with access to equity lines of credit and assist you in understanding how they should be used in such crunch situations. This can be a huge stress reliever! 

Understand the Three Primary Issues with Banking & Credit Management

Cost Effectiveness
Structure
Coordination with Wealth Management Plan
a.  Fees – can add up to 2% to annualized interest
b.  Rates – depending upon credit worthiness and collateral, different lenders have tremendous price variance
c.  Accelerated Payment Penalties – some loans carry additional fees if paid off early
d.  Tax Treatment – depending on the loan purpose, interest on the loan may be tax deductible 
a.  Collateral Requirements may be required for certain loans
Collateral impacts pricing
b.  Payment Schedule
i.   Flexibility of payments is usually a requirement
ii.  Interest only and semi-annual payment can help coordinate cash flows
a.  Leverage has an impact on the balance of the wealth plan
b. Special care should be used when collateral and source of repayment is a concentrated asset

Key Questions

  1. How do you & your spouse view credit – as a financial tool or as something to be avoided?
  2. Do you have access to a line of credit in the event of a cash-flow crunch?
  3. What structures do you have in place and why do you feel they are the best for you?

As you can tell, credit can be tailored around your financial needs and Pulse can be there to ease the process for you. By having a conversation with us, your credit is no longer just credit, but a tool that will lead to your financial well-being! 

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Securities offered through First Allied Securities, Inc. Member FINRA/SIPC. Advisory services offered through First Allied Advisory Services Inc., a registered investment adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation.
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