Cash Crunch? Here Are 4 Tax-Friendly Ways to Get Cash Quickly!

Are you facing a short-term cash crunch and need money without triggering taxable events by liquidating your investments? In this video, I share four practical strategies to generate the funds you need quickly and efficiently, usng the example of making a down payment on a home purchase.

We will walk through the following strategies using an example where Bob and Jennifer are purchasing a $1.5 million home and need $225,000 for their down payment:

→ Home Equity Line of Credit (HELOC): Learn how to leverage the equity in your current home to secure funds for a down payment while keeping your mortgage terms intact.

→ Non-Purpose Margin Loan: Discover how borrowing against your investment portfolio can provide liquidity without triggering taxable events.

→ Intrafamily Loan: If you have a wealthy relative, you can borrow money through a structured family loan with favorable terms, avoiding tax complications.

→ IRA Rollovers: Explore how you can use an IRA for a temporary withdrawal, with the funds rolled back within 60 days, avoiding penalties and tax implications.

These strategies are ideal for those needing cash without disturbing long-term investments or assets. This video will help you understand the advantages and risks of each option.

Zachary Morris, CFP®

Having traveled to over 35 countries, Zach is a believer in Ralph Waldo Emerson’s statement that Life is about the journey, not the destination. Being a CERTIFIED FINANCIAL PLANNER™ provides Zach the opportunity to help clients define and realize their journey, and co-founding Paces Ferry Wealth Advisors, an independent firm, allows the freedom to define the client experience along the way.