Advisor Resources

The convergence of wealth & retirement: A $40 trillion market for advisors Jul 2, 2025 9:00:00 AM See how integrating wealth management and retirement planning can help your firm tap into a $40 trillion market opportunity. If you’re looking to grow your wealth management firm’s client base, serving retirement plan participants might just be the key to unlocking greater growth potential. The opportunity by the numbers: According to the most recent Betterment Retirement Readiness Report, 79% of employees say their employer offers a 401(k) plan. Valued at $40 trillion, retirement assets are 32% of all U.S. household financial assets, according to the ICI. The National Association of Plan Advisors reported that 74% of 401(k) participants would welcome professional help managing their accounts. The opportunity is clear for growth-minded advisors: A multi-trillion-dollar market of consumers is actively seeking professional financial guidance. In this article, we explore this growth opportunity along with how to overcome the challenges that come with it. Key benefits for advisors: Integrating wealth management and retirement planning The convergence of wealth management and retirement planning offers two benefits. Benefit 1: Use retirement planning as a growth engine for your firm Many plan participants are eager to work with financial advisors. According to a 2024 study by American Century Investments, over half use a financial advisor, and among those who don’t, 39% plan to do so in the future. At Betterment, we found in our Retirement Readiness Report that 21% would consider switching jobs to one that offers access to a live financial advisor. Engaging with retirement plan participants can be a powerful way for advisors to expand their client base. A 2024 Capital Group study found that high-growth wealth managers were: More likely to have 25% or more of their AUM in defined contribution plans 23% more likely to have a strategy for transitioning plan participants into prospects for their practice. Additionally, the study found that advisors can uncover a $1 million prospect for every 10 meetings they have with participants in medium to large plans. If you’re not already serving retirement plans, restructuring your firm to do so can be a gateway to growth. Plan participants have complex financial lives, and many will welcome advice on how to manage their overall wealth. Benefit 2: Manage clients’ full financial picture On the wealth management side of your business, clients look for holistic advice. Their retirement nest egg is part of their wealth, after all. Your current wealth management clients likely have sizable assets in their retirement plans and could benefit from your advice on portfolio allocation and management. Whether they’re switching jobs, starting a business, or reallocating funds, you can help them make informed decisions across their entire financial life. Vanguard’s “How America Saves 2025” report found that average plan participant account balances increased by 10% in 2024, reaching an all-time high of $148,153. CNBC reported that about two-thirds of rollover investors hold cash unintentionally because the funds are initially placed in a cash account. You have the opportunity to position your firm as a one-stop resource for financial wellness, retaining clients by helping them manage their entire financial life. How to overcome the challenges of managing wealth and retirement clients Serving wealth and retirement plans usually requires restructuring your firm. Below are three potential obstacles and how our team at Betterment can help you overcome them. Challenge 1: Provide holistic financial planning at scale The challenge: Serving multiple retirement plans simultaneously, each with dozens or even hundreds of participants, can make retirement planning at scale overwhelming for your firm without the right platform. How Betterment helps: Receive dedicated support from day one to streamline plan management—so you can focus on growing your business. A Senior 401(k) Onboarding Associate will be your dedicated point of contact to help you onboard new clients and offer ongoing support. You’ll also be assigned a 401(k) Client Success Manager, who will be your go-to contact for any questions, along with helping you set goals, manage plan changes, navigate Form 5500 filings, and create tailored education for plan participants. Challenge 2: Staying on top of regulatory compliance The challenge: Staying compliant takes work—and plenty of time. You’ll not only need to stay on top of legislative and regulatory changes related to retirement plans, but also your firm’s compliance and legal policies. How Betterment helps: We are your 3(16) administrator, handling compliance testing, taking on time-intensive work, and preparing audit packages and 5500s. We have a team of compliance experts with ASPPA, NAPA, and IRS designations, plus 50+ years of combined compliance experience. Challenge 3: Managing technologies to serve retirement plans The challenge: Serving retirement plans will require your firm to adopt new technologies to automate planning, compliance, and communications at scale. Trying to piece a tech stack together by yourself can take your valuable time away from serving clients. How Betterment helps: Our all-in-one dashboard helps you track plan metrics, generate custom reports, and get participant-level data with just a few clicks. Use our tools and technology to easily convert participants to new clients, building relationships to offer holistic financial planning to meet their evolving needs. Plus, for self-employed clients, we offer a streamlined, all-digital solo 401(k). And our mobile app lets your clients see their full financial picture on the go, branded with your firm’s logo, reinforcing your value between meetings. Grow your firm with a 401(k) solution built for advisors An easy-to-use platform with customizable investment options and white glove support for you and your clients. Flexible, customizable plan design and investment options Dedicated advisor and client support for administrative needs An all-in-one platform to service clients across retirement and wealth

What’s new from Betterment Advisor Solutions Jun 30, 2025 6:06:27 PM Discover the latest products and features launched in Q2 2025, designed to give advisors more control, flexibility, and transparency. Table of Contents Portfolio management Billing SBLOCs Advisor experience New Advisor Exchange episode We’re continuously building out new tools and enhancements to help you work smarter not harder. In Q2, we introduced a wave of powerful updates—including a major acquisition and new portfolio management features designed to give you greater control and customization with less manual effort. Expanded support for legacy and concentrated positions Build custom models with ETFs, mutual funds, and now single stocks. Our latest update gives you more control without adding complexity and helps you: Bring legacy and held-away assets into a long-term strategy—powered by TLH, rebalancing, and smart withdrawals that minimize the tax impact. Use sell-only substitutes with ETFs, mutual funds, and single stocks to unwind concentrated positions gradually. You can leverage sell-only substitutes when incorporating your clients' legacy positions into your target model's asset allocation, without buying additional shares during rebalancing. Here’s what’s changed: More control over rebalancing: This functionality allows you to add additional tickers to your security groups for greater control over rebalancing behavior in your custom model portfolios. Tax-efficient exposure: Betterment will help reduce exposure over time according to your instructions with our tax-efficient algorithms. Read more about sell-only substitutes. The future of portfolio management Our recent acquisition of Rowboat Advisors, a portfolio optimization software, paves the way for direct indexing capabilities on the platform. Over the coming months, we’ll be introducing new features that deliver more customization, intelligent automation, and enhanced flexibility to support your firm’s unique needs. Be on the lookout for: Tools for more transparent trading: Run sophisticated simulations and use critical data to better understand trade impacts and make more informed decisions. Expanded portfolio options: Create and edit portfolios with a wider range of options that work seamlessly with rebalancing, tax-loss harvesting, tax-smart portfolio transitions, asset location and intelligent withdrawals. Watch our latest webinar to learn more about what’s to come in 2026, including UMAs and direct indexing. Reduced ACH payment timelines Big news: We’ve shortened our payment processing time from 12 days down to just 5 business days. You’ll get paid sooner, with more transparency. With billing and fee tracking fully integrated into the platform, it’s easy to see exactly what you’re owed each cycle—no spreadsheets, no guesswork. The result: a cleaner more efficient, billing experience that helps you stay compliant, minimize error, and save time. Upgraded mutual fund transactions Give your clients the clarity and confidence they expect when moving assets, with updates that: Eliminate withdrawal discrepancies due to fluctuating Net Asset Value (NAV). Improve fee-assessment precision, reducing the risk of over/undercharges and aligning with regulatory expectations. Simplify tax reporting for clients by ensuring the amount withdrawn matches the amount received. A faster lending solution Securities Backed Lines of Credit (SBLOCs) with Betterment Advisor Solutions give your clients access to the value of their Betterment assets as lines of credit without liquidating investments. Fast and flexible for your clients: It’s a simple, automated application process, giving your clients immediate access to their credit line after approval. Streamlined for your firm: Leverage an integrated borrowing solution that complements your investment management practice. Register for our webinar to learn more and explore how SBLOCs can become a valuable tool for serving high net-worth clients. Save your seat Securities-Backed Lines of Credit (SBLOCs) are offered by The Bancorp Bank, N.A., Member FDIC, to Betterment clients. Betterment is not a bank. See more in disclosures. Guided client tours for winning new plans Win prospects and onboard with confidence with our new Clients Tours tab. This highly requested update enables you to give plan sponsor clients a guided demo around our platform. Access client tours in the left rail of your advisor dashboard. Planning strategies for the equity-rich and cash-constrained Client. Views may not be representative. See reviews at G2. In our latest episode of The Advisor Exchange, Natalie Taylor, CFP®, founder of the Goodland Group, discusses how she maximizes planning for an underserved segment: mid-career tech professionals with complex equity compensation packages. From navigating RSUs and AMT to rethinking the AUM model and scaling with values-based planning, Natalie shares the strategies, tech, and mindset that have shaped her fast-growing firm. Watch now. It’s been a busy year—see what we launched in Q1, or get in touch with our team to learn more. Book a demo.

5 practical ways to help clients during market volatility Jun 12, 2025 1:22:38 PM Markets can be unpredictable, but with these five tips, your client’s investing strategy doesn’t have to be. During volatile markets, clients look to their advisors for more than just financial expertise. They’re looking for reassurance and perspective. Below are five ways you can help your clients keep their financial plans on track, balancing the stresses of short-term volatility and long-term goals. 1. Assess your client’s goals Volatility provides an ideal moment to review your client’s financial plan and confirm it still reflects their goals, risk tolerance, and time horizon. Recent changes in your clients’ lives, paired with market changes, can put your clients at risk of not reaching their goals. By conducting an assessment of each client’s goals, you can plan to make adjustments if needed to align assets with a client’s financial needs. For example, making sure they have enough lower-risk assets (cash or bonds) to cover shorter-term needs. You can use this opportunity to stress-test a client’s portfolio and remind them that their plan is built to weather periods like this. Tools within Betterment Advisor Solutions allow you to update risk preferences, adjust allocations, and communicate clearly how changes may affect long-term projections. 2. Use auto deposits to maintain consistent investments A simple and effective way to help clients stick to their plan is by encouraging automated deposits. When markets decline, many investors are tempted to stop making contributions, which means they could lose out on potential market gains when the market rebounds. Setting up recurring auto deposits into investment accounts can help clients stay committed to their goals regardless of market swings. Auto deposits also enable dollar-cost averaging, which spreads out purchase prices over time and helps manage downside risk. The key is consistency, and automation makes that easier to maintain. Here’s an easy explainer on dollar-cost averaging for your clients. 3. Use Cash Reserve to build a buffer Financial confidence during downturns often comes from knowing there’s money set aside for unexpected expenses. Without a cash buffer, Without a cash buffer, clients might feel pressured (or forced) to sell investments at a loss to cover unexpected expenses. Clients also risk having to tap into 401(k)s and other retirement accounts, which can come with consequences. Clients should aim to set aside 3–6 months’ (or more!) worth of expenses in a high-yield cash account and earn a competitive interest while maintaining ease of access to their funds. Using a Cash Reserve account from Betterment not only enhances liquidity but also ensures their investment strategy stays intact during market volatility. Here are tips for your clients on how to level-up their emergency fund. 4. Set up a gains allowance Market volatility often fuels the urge to “take profits” or, potentially worse, miss the opportunity altogether. Rather than managing volatility on the fly, an automated gains allowance allows you to maintain more granular control over capital gains while optimizing your client’s tax impact. Without a gains allowance, clients may struggle with the fact that they haven’t realized any profits, leading to one-off decisions. With Betterment Advisor Solutions’ tax management tools, advisors can set an annual capital gains allowance for each taxpayer in a household. With our automated tech, capital gains realized from all taxable events will contribute to the gains allowance, while all realized capital losses in taxable accounts will offset realized gains and free up room in the gains allowance. When the allowance is reached, trading will cease selling assets with unrealized capital gains but will continue selling assets at a loss. With Betterment, you can edit this allowance at any time for your clients. 5. Communicate proactively In times of uncertainty, silence can create fear. Advisors should lean into proactive communication, offering perspective, context, and empathy. Without communication, clients may lose trust in your ability to serve them and likely go elsewhere to have their questions answered. By consistently checking in with clients, you can build deeper relationships. It’s also an opportunity to build more trust by using data and historical trends to reframe market dips as opportunities, like buying at a discount, rebalancing portfolios, or optimizing taxes. Betterment’s platform offers advisors communication and planning tools to connect 1:1 with clients. Grow your RIA, even in turbulent times Betterment Advisor Solutions is the all-in-one custodial platform for independent RIAs. Get the technology and support to serve more clients, more efficiently, across investing, retirement, and cash.

SECURE 2.0 deadlines for 2025: What advisors need to know to support their clients May 22, 2025 10:57:37 AM Savvy financial advisors can leverage their knowledge of SECURE 2.0 to increase client loyalty and serve workplace plans. Here’s how. The SECURE 2.0 Act was passed in 2022, but its provisions are still being implemented. Designed to encourage more employees to save for retirement in a workplace-sponsored plan, the legislation makes it easier for employees to build emergency savings and also pay down student loans. Why is SECURE 2.0 important for advisors? Many of your clients could benefit from the SECURE 2.0 provisions, but they may need help navigating multiple decisions. In the 2024 Betterment at Work Retirement Readiness Annual Report, we found that 37% of respondents reported not having an emergency fund 41% of respondents report they are currently managing student debt With provisions that address both emergency savings and student loans, as an advisor, you can be a trusted guide for clients looking to manage a stressful financial life. SECURE 2.0 provisions that may impact your clients Whether you’re advising an entire retirement plan for a workplace or serving individual clients, the following provides you with an overview of some of the most important SECURE 2.0 provisions that may impact your clients’ financial plans. Student loan matching contributions Effective date: January 1, 2024 (new IRS guidance issued for January 2025) What’s changing: Employers can treat an employee's qualified student loan payments as elective deferrals for the purpose of making matching contributions to retirement plans, such as 401(k), 403(b), SIMPLE IRA, and governmental 457(b) plans. Purpose: This optional provision aims to assist employees who prioritize student loan repayments over retirement savings, enabling them to receive employer matching contributions even if they are not contributing directly to their retirement plan. How you can help clients: Not all employers will offer this provision. If you’re advising plan administrators, you can coach them through launching a student-loan match and help them educate their employees. For individual clients, you can help them find the right balance between retirement savings and student loan payments. Automatic enrollment for new retirement plans Effective date: January 1, 2025 What’s changing: New 401(k) and 403(b) plans established after December 29, 2022, must automatically enroll eligible employees. The initial default contribution rate must be at least 3%, increasing by 1% annually until it reaches at least 10%, but not more than 15%. Exemptions: Businesses with 10 or fewer employees, those in operation for less than three years, church plans, and governmental plans are exempt from this requirement. How you can help clients: Help your clients calculate how much they need to save. The default contribution may be appropriate for some, but not all. Additionally, you can ensure your clients are considering their workplace plan assets along with their other savings to build a healthy, holistic portfolio. Catch-up contributions (enhanced for ages 60–63) Effective date: January 1, 2025 What’s changing: Individuals aged 60 to 63 can make higher catch-up contributions to 401(k), 403(b), and governmental 457(b) plans. The limit increases to the greater of $10,000 or 150% of the standard catch-up amount, which is projected to be $11,250 in 2025. Additional notes: This enhanced limit is available only to qualified individuals who are 60 to 63. Upon reaching age 64, the standard catch-up limit applies. How you can help clients: Given the detailed nuances of this provision, you can prepare clients who are in their late 50s or early 60s plan for it. You can help them do the math and determine the right amount of catch-up contribution for them. Emergency savings accounts linked to retirement plans Effective date: January 1, 2025 What’s changing: Employers may offer pension-linked emergency savings accounts (PLESAs) to non-highly compensated employees. Employees can contribute up to $2,500 to these accounts on an after-tax basis, with the ability to make penalty-free withdrawals. Employer matching: Employers may offer matching contributions on these emergency savings, similar to standard retirement contributions. How you can help clients: It may seem simple, but some of your clients, especially if you advise workplace plans, may not have emergency savings. Or if they do, there is a good chance many don’t know how much to save. You can provide advice to ensure these clients set aside adequate savings for the unexpected. How SECURE 2.0 creates growth opportunities for financial advisors Given the need for education around SECURE 2.0, financial advisors are well-positioned to capitalize on two growth opportunities: Build client loyalty Advisors are in a position to help individual clients navigate retirement saving decisions related to their workplace plans. For example, clients may benefit from being advised on the following provisions: Catch-up contributions: Individuals aged 60 to 63 can make higher catch-up contributions, but there are IRS guidelines that your clients need to follow. Student loan matching contributions: If your clients’ employers offer student loan matching, you can help clients determine how much they should pay towards their student loans versus funding their retirement plans. Increase retirement plan business SECURE 2.0 makes it easier for workplaces to offer plans and increase participation, creating growth opportunities for advisors who serve retirement plans. Here are two ways your firm may benefit from SECURE 2.0 while advising plans: Increased plan participation: Automatic enrollment under SECURE 2.0 means more employees saving for retirement—creating more opportunities to engage, educate, and support participants with long-term financial planning. Build loyalty with plan administrators: The legislation comes with many new provisions for plan administrators to track. Advisors who are well-versed in SECURE 2.0 can establish a reputation as a trusted expert for workplace plan administrators, helping them and their employees understand the legislation. We’re here to help your firm grow Helping you grow your RIA your way. Betterment Advisor Solutions is the all-in-one custodial platform purpose-built for independent RIAs. To learn more about our digital platform, get in touch with a member of our team. Looking for knowledge to grow your business? From understanding SECURE 2.0 legislation to the latest advisor tech and everything in between, our experts at Betterment have resources to help you grow your firm. See all free advisor resources.

5 Tips to Give to Inexperienced Investors During A Market Dip May 13, 2025 11:53:05 AM If your clients are first-time investors, helping them make that initial deposit and setting up their portfolios can be difficult. During a market dip? Even more so. Here are 5 talking points to help you communicate with inexperienced investors in times of volatility. Investing money for the first time may make your clients feel like they're diving into the deep end of the pool. It can be even more nerve-wracking when market conditions are choppy. If they ultimately decide they're ready, here are 5 tips for helping new investors get started during a market downturn. 1. "Have an emergency fund." Talking about emergency planning can be a great way to get new investors comfortable with the idea of investing. Help your client set about 3 to 6 months worth of expenses and recurring payments aside to build an emergency fund held in a cash account or a low-risk investment portfolio. Having this safety net will give your client the confidence to invest the rest of their money more aggressively—and with less worry. 2. "Invest at your own pace." Lump sum investing allows clients to optimize their money immediately in an appropriate portfolio strategy based on their specific goals and time horizon. Although this approach may generate a better investment outcome over the long term, inexperienced investors can be hesitant. Your more risk averse clients may prefer to dollar-cost average, spreading out risk during volatile market periods. Another approach that may make clients feel more comfortable is to invest a little bit at a time. One of the best ways to do this is by helping your clients set up an auto-deposit schedule where they choose the investment amount (i.e., $300) and frequency (i.e., monthly). By setting their own pace, your client can feel more secure moving forward. 3. "Focus on your time horizon." Remind your clients that not all of their investments need to have the same risk level. Your clients are likely investing for multiple financial goals at the same time, such as a home down payment, future college expenses, or retirement. Each of these financial goals likely has a different time horizon and should be invested accordingly. Breaking your clients’ investments into goals allows you to better control their risk and build a personalized investing plan. It can also make less experienced investors feel more comfortable with the level of risk they are taking on in proportion to how soon they’ll need to access a particular bucket of money. Betterment Advisor Solutions' powerful portfolio-building tools enable you to serve your clients' needs and investing preferences. Our tooling automates rebalancing, tax-loss harvesting, deposits, and more, so you can more efficiently manage your clients' plans. 4. "Pay attention to historical context." As a new investor, your client may not have much context or know what to expect in terms of performance. It can be helpful to let clients know that many others before them have felt nervous about markets. From 1942 to 2022, the U.S. has been through 15 bear markets. On average, bear markets last for about 11.3 months, which tend to be significantly shorter than bull markets which last 4.4 years on average. Remind them that, after each of the past downturns, the stock market often recovers. You should make sure clients understand that there have been many market dips in the past, and they will likely see many more in the future. They are an inescapable part of investing and all investors, new and old, should learn to cope with volatility. Though your clients may be tempted to make major withdrawals or even halt their auto-deposits when the market dives, remind them that now is the time to stay the course. History shows us that the market, and their portfolio, can recover. 5. "Focus on what you can control." Your clients can't control the stock market. They also can't control the news, inflation, GDP growth, or unemployment rates. However, they can control how much they save, how much risk they take, how diversified they are, and how they react when markets get scary. In the long run, push your clients to focus on what they can control, and encourage them to do their best to ignore what they can't. New investors should not be discouraged by market dips. At Betterment, our passive investing model is derived from the idea that taking action solely based on market movement can be detrimental—contrary to what your clients might think. Ultimately, being thoughtful about your clients' finances and overall risk in their portfolios during market uncertainty can help them weather the storm, no matter how long the downturn lasts. When volatility hits, rest assured that we are working for your clients. Our automatic allocation adjustments, portfolio rebalancing, and tax-loss harvesting can help your clients ride out a choppy market.

How to build high-net-worth client relationships with an SBLOC Apr 22, 2025 9:00:00 AM Learn 5 benefits of offering an SBLOC for your firm, and how clients can leverage this modern borrowing tool to keep their investments working for them. Securities-Backed-Lines of Credit (SBLOCs) are offered by The Bancorp to Betterment clients. Betterment is not a bank. See more below. High-net-worth clients often face the problem of needing liquidity, but not wanting to compromise their long-term portfolios and interrupt their wealth management plans. You can provide the solution to this problem. Offering an SBLOC allows your firm to meet clients’ liquidity needs. 5 benefits of offering an SBLOC for your firm Incorporating SBLOCs into your advisory practice shows your commitment to providing innovative and client-centric financial solutions. Many prospective or current clients may not be aware of what an SBLOC is, allowing your firm to leverage its benefits to: Attract high-net-worth clients: Use the SBLOC in your marketing materials and in conversations with prospective clients. The flexibility to borrow against a portfolio without disrupting investment gains can be a strong selling point to high-net-worth clients. Deepen client trust and increase retention: As you learn about your client’s financial and life goals, you can offer the SBLOC as part of financial planning conversations. Because of its flexibility, an SBLOC is a powerful planning tool that can be used to benefit a client in many situations (more on that below). Retain investment strategies: By providing liquidity without requiring your clients to sell their investments, an SBLOC allows your firm to stick to long-term strategies. This means you can maintain asset allocation for clients, ultimately helping you preserve their portfolios. Add debt management and liquidity into your planning: With an SBLOC, you can proactively help clients incorporate debt into their financial planning. But an SBLOC also gives clients immediate access to funds when unexpected opportunities or needs arise. The ability to use an SBLOC proactively or reactively adds an extra layer of flexibility to your overall wealth management planning tools. Manage both sides of a client’s balance sheet: Offering an SBLOC enables you to address both the asset and liability sides of a client’s financial picture. While clients continue growing their investment portfolios, the SBLOC provides a structured way to manage liabilities, creating a more holistic and balanced financial strategy. Common ways clients use an SBLOC Although not for purchasing securities, clients can use an SBLOC for many purposes—it’s really based on their needs and goals. Here are several practical use cases that you can share with clients: Purchase or renovate a home Clients looking to invest in real estate might not want to disturb their investment portfolios. An SBLOC can provide the funds needed for a down payment or for home renovations, allowing clients to secure or enhance a property while keeping their portfolio intact. It can also serve as a smart bridge loan for buyers, purchasing a new home while their current one is still on the market. Pay inheritance, estate, or income taxes Large tax bills from inheritance, estate planning, or income taxes can strain liquidity. With an SBLOC, clients can cover these obligations without the need to liquidate investments at inopportune times, preserving both their tax strategy and long-term growth potential. Finance business expenses Entrepreneurs and business owners often require flexible financing to cover operational expenses, expansion initiatives, or unforeseen costs. An SBLOC offers a non-disruptive way to access capital, letting them invest in their business while maintaining their personal portfolio strategy. Pay college tuition For clients planning for higher education, an SBLOC can help cover college tuition and related expenses. This solution provides immediate funds, enabling clients to meet educational needs without having to sell investments that could be yielding returns over time. Manage medical bills Unexpected medical expenses can be financially straining. An SBLOC offers a ready source of liquidity to manage high medical bills, ensuring clients can address their healthcare needs promptly while continuing to benefit from a long-term investment portfolio. Pay for a wedding Weddings can be one of life’s most memorable—and costly—events. Instead of disrupting their investment strategy, clients can use an SBLOC to cover wedding expenses, enjoying their big day without sacrificing future financial growth. The Betterment SBLOC process Betterment Advisor Solutions, in partnership with The Bancorp, has streamlined the SBLOC process to ensure a swift and efficient experience for both advisors and clients. Automated application: Clients benefit from a simple, automated application process that can be completed quickly, ensuring access to liquidity when needed. Collateral pledge: Eligible securities held in Betterment taxable legal accounts—including individual, joint, and trust accounts—are pledged as collateral. This protects the client’s portfolio while securing the credit line. Establishing the credit line: The Bancorp assesses the portfolio’s value to determine the credit line. Typically, clients can borrow between 50% and 95%* of the value of their pledged assets, depending on the nature and stability of the investments. Accessing and repaying funds: Once established, the credit line is available for draws as needed. Clients pay only interest on the outstanding balance each month, with the flexibility to repay the principal at any time. Interest rates are variable, tied to the WSJ Prime Rate plus a margin, keeping the financing competitive. Maintaining collateral value: In the event that the value of the pledged securities falls below a required threshold, a maintenance call is issued. This may require a reallocation of the portfolio to obtain higher borrowing power, the deposit of additional funds or securities, or partial repayment of the loan, to ensure the collateral remains sufficient.