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SBLOC: extra cash by borrowing against assets


Oct 16, 2016
Have been talking to a few brokers and their affiliates, here is what I found so far.
TD Ameritrade offers LOC through a few lenders they work with. Here in TX, it's TD Bank or Tristate Bank. Tristate banks will not offer LOC if use 100% TSLA stocks as collateral.
So it's a no for me.

Wells Fargo give me a 1.75%, still good but not great. You can get up to 60% of your assets value.
  • Helpful
Reactions: 2daMoon


Mostly Harmless
Nov 25, 2020
Update on Fidelity and IBKR. (two hours on hold for Fidelity; call back in five minutes for IBKR)

Fidelity won't match IBKR Margin rate, and they offered a 1.5% discount, taking the default 6.825% for my account size down to 5.325%, which was nothing to write home about compared to IBKR. Fidelity will lend up to 40% of collateral for an account with mostly (99%) TSLA shares.

IBKR is ~1.24% - 1.55% and they will lend up to 25% against a TSLA portfolio using their "Pro" account.

My comfort zone aims to avoid borrowing more than 30% of collateral for living expenses while the shares grow, so IBKR should work well for this. I'll move shares enough from Fidelity to allow for a little more than what I intended to borrow for the first year of retirement. With any luck TSLA will grow enough to allow this to cover expenses for a second year, supplemented by another share transfer from Fidelity if needed.

Lather, rinse, repeat for three years before considering any distributions of TSLA gains. This, plus Social Security will provide a 10%-15% pay raise vs. remaining employed, as well as the possibility of a 0% tax rate for the second and third year. By the time I begin taking distributions that should double the old salary.


Active Member
Mar 31, 2016
You must have negotiated that rate, as their published margin rates, which are based on balance, not collateral, are much higher: 5.45%-8.95%. While the SBLOC rates are: 2.191%-5.495%.

Say for example you have $1,000,000 of stocks and you want to borrow $45k for living expenses. The margin rate would be 8.45% while the SBLOC rate would be 2.953%. (Both of those are the published "rack rates.")

Yeah I did negotiate a lower 1.94% margin rate. I assume the SBLOC rate can be negotiated as well.
  • Informative
Reactions: Artful Dodger


Supporting Member
Feb 16, 2013
vivant non-traveler
Here are links to a few offerings from different brokers:
  • Most of them set a single rate based on the worth of the assets they are secured against, while IB sets the rate based on how much you have borrowed in tiers. (So with IB you always pay the highest rate for the first $100k.)
  • TD Ameritrade and Charles Schwab are essentially the same company but have different rates. o_O
  • E*TRADE currently lets you borrow up to 55% against TSLA.
Also, you can use them against each other. For example find the broker with the lowest rate for the worth of your assets and ask your preferred broker, if it is different, to beat or match the rate.
did some looking at PAL's from Schwab
No fees!! hurray!
TANSTAAFL (there aint np such thing as a free lunch)

heres the rub
It's not a fee, its "compensation"
"......Your Schwab Financial Consultant and Schwab Bank Regional Banking Manager may receive compensation in connection with the PAL at Schwab Bank. The compensation provided to a Schwab Financial Consultant is determined based on the utilization of the PAL, and is paid on a one-time basis or on a periodic basis during the life of the PAL. The compensation provided to a Schwab Bank Regional Banking Manager is made as a single payment in connection with the opening of the PAL, is determined based on the loan value of collateral pledged in support of the PAL, and determined by Schwab Bank at the origination of the PAL, and does not exceed $5,000 per PAL........"

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