Compound Pledged Asset Line (PAL)

If you have any questions, please email concierge@withcompound.com

Pledged Asset Lines allow you to access liquidity using your public investments (stocks and bonds) without having to sell and incur capital gains or income taxes. We partner with Schwab to offer credit lines secured by your public investment account(s) at Compound.

Get Started

We will schedule a 25-minute application call with you and Schwab to begin the setup process, which includes a credit check and verbal sharing of annual income information.
Complete loan documents via DocuSign.
If approved, your line of credit will be ready to draw in 3 weeks.

Details

PALs can be used for home purchases, tax payments, or general discretionary spending.
The size of the credit line is determined by your income and the lending value assigned to the positions in your investment accounts. Generally, ETFs and Mutual Funds will be given a higher lending value than single stocks. Bonds/Fixed Income will have a higher lending value than stocks.
The minimum credit line size is $100,000. (The initial draw must be at least $70,000 for regulatory reasons).

Terms & Pricing

Annual interest rate of 1.95-4.70% depending on the loan size.
No setup fees or prepayment penalties.
PALs can not be used to purchase securities or pay down margin loans.
Retirement assets are not eligible to use as collateral.

Disclosure

Compound Financial Inc. (“Compound Financial”) offers software-based financial management and planning tools. Investment advisory services are provided by Compound Advisors, Inc. (“Compound Advisers”), an SEC-registered investment adviser (CRD# 306341/SEC#: 801-122303). Registration as an investment adviser does not imply any level of skill or training. Compound Tax, LLC (“Compound Tax”) provides tax consulting and compliance services. Compound Advisers and Compound Tax are wholly owned subsidiaries of Compound Financial. Altogether, we refer to our business as “Compound.” The information contained in this communication is provided by Compound for general informational purposes and should not be considered as financial or tax advice. Compound is not a licensed lender, law firm or insurance agency, and Clients should consult with their personal investment, insurance, tax or legal advisors or brokers regarding their particular circumstances as needed before making any final financial decisions. This communication is not an offer to sell securities. All investing involves risk, including the possible loss of any or all of the money invested, and past performance never guarantees future results. Please see Compound Advisers' Form CRS here, and ADV Part 2A Brochure here.