I am a 17-year veteran of the financial services industry specializing in lending and tax free/municipal bonds. Specializing in lending may seem unique for an investment person, so let me give you some background on why I’m so passionate about helping people with lending opportunities.
Value statement
Early in my career, I assumed that wealthy business owners and investors paid for everything in cash. Why borrow to buy a house or finance a business if you could pay for it with cash? “Debt is bad, debt works against you,” is what we are usually taught. However, as I met more successful, high net worth investors and entrepreneurs, I learned they did not avoid debt, but embraced it. And there’s good debt and there’s bad debt: bad debt is borrowing to finance daily living standards, purchase unproductive assets, or worse yet, to purchase depreciating assets. Good debt is debt that yields an income stream sufficient to pay back principal and interest. I focus on helping people finance good debt, and often witnessing clients reap rewards from employing good debt is a phenomenal thrill.
RBC Wealth Management gives me world-class access to custom lending solutions and I provide recommendations for how low interest loans can help my clients meet a variety of wealth accumulation and liquidity management goals. This includes securities loans, business loans, real estate, margin loans, bridge financing, and refinancing for high net worth clients, trusts, and personal holding companies. At RBC Wealth Management, we also have the Premier Line of Credit and RBC Express Credit, lending solutions that offer low interest rates via LIBOR lending. We also offer mortgage lending, SBA commercial lending and commercial mortgages.
The other unique area I specialize in is municipal bonds, what I believe is the cornerstone of investing for high net worth families with high tax rates. Municipal bonds can offer tax-free income, safety/capital preservation, and a fixed return for regular cash income. At RBC Wealth Management, we have a team of trading professionals and strategists working together on your behalf and we have one of the largest municipal finance practices in the country. This deep expertise allows us to offer you a wide variety of municipal bonds, service and advice.
So, should we work together? On the municipal bond side, if you’re in a high tax bracket and are seeking an opportunity for predictable, safe income, then yes, we should probably work together. On the lending side, let’s say you were going to purchase a new house and you need funds for the down payment. Would you sell your stock for the cash? Or would you rather take a lower interest rate loan against your stock for the down payment? If you said sell the stock, we are probably not a good fit. That’s ok — taking on any sort of debt is a deeply personal and emotional decision you need to be comfortable with. If you opted to take the low interest loan, keeping your stock and all the potential future earnings and dividends, we are probably a good fit. Obviously this is a simplistic example, but hopefully it makes the point. We have only scratched the surface of the potential lending opportunities available and there are many higher level sophisticated strategies we can discuss.
