My line of credit: $250,000. My portfolio: $ 750,000.
2006-10-02 04:12:07 · 6 answers · asked by punjab 1 in Business & Finance ➔ Personal Finance
Always go with your portfolio.
Using credit for emergencies can put you in financial ruin.
2006-10-02 04:18:27 · answer #1 · answered by Traditional Gal 2 · 0⤊ 0⤋
Depends on the rate you are getting from your portfolio and what the interest rate on your line of credit is. There are many factors to consider when deciding this.
If you don't have much experience or knowledge in this area I would recommend a financial planner or consultant to help you and possibly help you handle your finances and investments. That's what I finally did and it's been very helpful to have someone to explain things and help make decisions like this. Just be careful in who you choose. Get recommendations and interview till you find someone who you feel comfortable and confident with. Good Luck.
2006-10-02 04:35:17 · answer #2 · answered by sunnyca 3 · 0⤊ 0⤋
Hello Punjab,
Since this is an Emergency, and assuming that you will not have costly early withdrawal fees on your portfolio, go with your credit line. If your credit line is like most in the world, you will have your first 30 days of borrowing free. You may always pay this amount off within the 30 days with no financial cost.
If your first 30 days are not free, then your portfolio please, (Unless you are the lucky man who is able to see a return of 30% on your investment portfolio.)
James in San Diego
2006-10-02 04:24:43 · answer #3 · answered by jpr_sd 4 · 1⤊ 0⤋
You have to compare the cost. If your credit line cost you 15% per year in interest, than that is impossible to beat with your portfolio.
On the other hand, if your portfolio is not liquid or liquidation implies penalties, then you should compare the cost of the two realistically, by which I mean that you take into acount that you have to repay the credit-line someday.
2006-10-02 04:26:00 · answer #4 · answered by cordefr 7 · 0⤊ 0⤋
I don't know what kind of portfolio you have. Is anything liquid, where you could take something out without penalties? That's where I'd go first.
I'd steer clear of the credit line. The amount they charge in interest is insane.
2006-10-02 04:16:21 · answer #5 · answered by chefgrille 7 · 0⤊ 0⤋
No matter what your emergency is or how much money you have available you do not have any liquid savings?
Make a new budget and put some money into savings for those type of financial emergenices that need t be taken care of.
Time to re-evaluate yourself.
2006-10-02 05:35:58 · answer #6 · answered by Julie 3 · 0⤊ 0⤋