SBLOCs Explained: How Wealthy Investors Borrow Without Selling Stocks | Michael Acosta

Michael Acosta joins Ben to explore an often-overlooked financial planning strategy: using a securities-backed line of credit (SBLOC) to unlock the value of a taxable brokerage account without selling appreciated investments. Together they explain how these lending arrangements work, when they may be appropriate, and how they compare to alternatives like home equity lines of credit, 401(k) loans, and cash value life insurance. The conversation covers the benefits of avoiding capital gains taxes, preserving long-term compounding, managing sequence of returns risk in retirement, and maintaining financial flexibility, while also addressing the risks of leverage, margin calls, and interest costs. Throughout the episode, Ben and Michael emphasize that borrowing against investments is not a one-size-fits-all solution, but rather another planning tool that can help investors make more informed decisions when used prudently within a comprehensive financial plan. Key Takeaways: • A securities-backed line of credit (SBLOC) allows investors to borrow against a taxable brokerage account without selling investments. • Avoiding the sale of appreciated assets can defer or potentially eliminate capital gains taxes through a future step-up in basis. • Bond-heavy portfolios generally qualify for higher borrowing limits than portfolios concentrated in individual stocks. • Conservative borrowing—using well below the maximum available credit—helps reduce margin call risk. • Alternative liquidity sources include HELOCs, 401(k) loans, Roth IRA contributions, 457 plans, and cash value life insurance. • The decision to use leverage should reflect both sound financial analysis and an individual's comfort with debt and investment risk. Key Timestamps: (01:33) – Why Brokerage Money Feels Locked (02:53) – Introducing SBLOC Basics (06:11) – Loan-to-Value Explained (11:34) – Rates and No Closing Costs (15:49) – Repayment Flexibility and Step-Up in Basis (20:51) – When Borrowing Beats Selling (29:41) – Other Ways to Access Liquidity Key Topics Discussed: Catholic Money Mastermind, Catholic financial planning, Catholic financial planners, Catholic financial advisors, Ben Martinek, faith and finances Mentions: Website: https://www.genesiswealthplanning.com/ More of Catholic Money Mastermind: Catholic Money Mastermind Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation. Are you looking to hire an advisor? Browse our members. https://catholicfinancialplanners.com... Are you a Financial Advisor who is serious about the Catholic Faith? Join our network and email info@catholicfinancialplanners.com