Lending gives you access to capital without necessarily selling your investments, so you can fund a purchase, a property, or a business need while keeping your long-term strategy on track. Through TSG Wealth Management’s affiliated banks, you have access to a range of lending and financing options, integrated with the rest of your wealth plan.
Lending
Access to Capital, Without Derailing Your Strategy
How does lending fit into a wealth plan?
Strategic borrowing can be a planning tool, not just a last resort. The right loan can give you liquidity for an opportunity or a large expense without forcing you to sell investments at the wrong time or trigger unnecessary taxes. TSG helps you weigh when borrowing makes sense and coordinates financing with the rest of your plan.
Securities-Based Lending
Securities-based lending lets you borrow against the value of your investment portfolio while keeping it invested. Because you are not selling your holdings, you can access cash without disrupting your long-term strategy. This approach carries specific risks: if the value of your pledged investments falls, you may be required to add collateral or repay part of the loan, and your securities could be sold to meet the call.1
Residential Mortgages and Home Equity Financing
Through our affiliated banks, TSG clients have access to residential mortgages for purchasing or refinancing a home, as well as home equity financing that lets you borrow against the equity you have built. These can be coordinated with your broader cash flow and investment strategy.
Business Financing
For business owners, financing can fund growth, manage cash flow, or support a transition. TSG can help you access business financing through our affiliated banks and connect it to your business advisory and personal wealth planning.
Credit Cards and Everyday Banking
Access to credit cards and related banking services rounds out the options, helping you manage everyday spending and cash flow alongside your investments.
How TSG Approaches Lending
TSG is not a bank and does not lend directly. Our role is advisory: we help you decide whether borrowing is the right move in the first place, which type of financing fits the need, and how a loan would interact with the rest of your plan. Because we see your full financial picture, we can weigh the cost and risk of borrowing against alternatives such as selling assets or drawing from cash, rather than looking at a loan in isolation.
Once you decide to move forward, we provide access to lending and financing through our affiliated banks and coordinate the details with your investments, taxes, and long-term goals. We also help you keep an eye on the borrowing over time, since a strategy that made sense in one market or life stage may need revisiting as your circumstances change. The aim is always for your borrowing to support your broader strategy, not work against it.2
Frequently Asked Questions
What is securities-based lending?
Securities-based lending lets you borrow money using your investment portfolio as collateral, without selling your holdings. It can provide relatively quick access to cash for needs such as a real estate purchase or a short-term expense. It does carry risk: if your portfolio’s value drops, you may need to add collateral or repay part of the loan.
Can I borrow against my investment portfolio?
Yes. Through securities-based lending, you can borrow against the value of eligible investments while keeping them invested. Keep in mind that if the value of the pledged securities declines, you may be required to deposit additional assets or repay the loan, and the securities can be sold to cover it. Proceeds generally cannot be used to buy additional securities.
What is the difference between a home equity loan and a securities-based loan?
A home equity loan is secured by the equity in your home, while a securities-based loan is secured by your investment portfolio. Both let you borrow without selling the underlying asset, but they use different collateral and carry different risks, so the right choice depends on what you own and how you plan to use the funds.
Does TSG provide the loans directly?
No. TSG Wealth Management is not a bank and does not lend directly. Lending and financing are provided through affiliated banks, and TSG’s role is to help you decide when borrowing fits your plan and to coordinate it with the rest of your strategy.
Why might I borrow instead of selling my investments?
Borrowing can let you access cash while staying invested, which avoids selling assets at an inopportune time and may help you defer the capital gains taxes that a sale could trigger. Because the tax implications depend on your situation, TSG works alongside your existing CPA or tax advisor, with dedicated tax services available through TSG Tax Management.3 Borrowing also carries risk and costs, so it should fit your overall plan.
What can securities-based lending be used for?
Securities-based lending is often used for needs such as buying real estate, funding a business opportunity, covering a tax bill, or bridging a short-term cash need. It generally cannot be used to purchase additional securities or pay down a margin loan.
Explore your borrowing options.
Contact TSG Wealth Management or call 562.414.0900 to discuss how lending could fit your wealth strategy.
1Securities-based lending has special risks and is not appropriate for everyone. If the market value of a client’s pledged securities declines below required levels, the client may be required to pay down the line of credit or pledge additional eligible securities in order to maintain it, or the lender will require the sale of some or all of the client’s securities. Wells Fargo Advisors, on behalf of Wells Fargo Bank, N.A., will attempt to notify clients of maintenance calls but is not required to do so. Clients are not entitled to choose which securities in their accounts are sold. The sale of their securities may cause clients to suffer adverse tax consequences. Clients should discuss the tax implications of pledging securities as collateral with their tax advisors. An increase in interest rates will affect the overall cost of borrowing. All securities and accounts are subject to eligibility requirements. Clients should read all Wells Fargo Bank Priority Credit Line documents carefully. The proceeds from the Wells Fargo Bank Priority Credit Line may not be used to purchase or carry margin stock or pay down a margin account debit (talk to your financial advisor about additional restrictions on the use of proceeds). Margin stock is defined in Regulation U and includes, principally: (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 a margin stock; and (3) shares of most mutual funds. Securities held in a retirement account cannot be used as collateral to obtain a securities-based loan. Securities in a Wells Fargo Bank Priority Credit Line collateral account must meet collateral eligibility requirements.
Bank products and services are available through Wells Fargo Bank, N.A.
2Lending and other banking services available through Wells Fargo Advisors (NMLS ID 2234) are offered by banking and non-banking subsidiaries of Wells Fargo & Company, including, but not limited to Wells Fargo Bank, N.A. (NMLSR ID 399801) and Wells Fargo Home Mortgage, a division of Wells Fargo Bank, N.A. Certain restrictions apply. Programs, rates, terms, and conditions are subject to change without advance notice. Products are not available in all states. Wells Fargo Advisors is licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act and the Arizona Department of Financial Institutions (NMLS ID 0906158). Wells Fargo Clearing Services, LLC, holds a residential mortgage broker license in Georgia and is licensed as a residential mortgage broker (license number MB2234) in Massachusetts.
3Wells Fargo Advisors Financial Network and TSG Wealth Management are not legal or tax advisors. You should consult your own tax advisor before taking any action that may have tax consequences.