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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

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.

Paces Ferry Wealth Advisors, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.