Valuable Institutional Strategies for Investors Optimizing Net Interest Spreads
The Pinnacle VISION program enables clients to leverage their wealth in financing a residence, yacht, jet, or automobile. The primary objective of the program is to allow investors to use less cash and combine it with leverage… similar to how a bank optimizes the net interest spread to enhance its return on equity.
Our VISION clients keep their assets invested and borrow against them in order to make significant purchases. As long as investment performance exceeds the cost of borrowing the money, clients are better off borrowing and leveraging their assets. In short, this strategy puts capital to work and may reduce the net cost to an investor/purchaser by as much as 25%. Given that 70% of the multi-million dollar homes sold are purchased with cash, VISION provides a smarter way for wealthy people to make significant purchases. Through leverage, the buyer will have more available cash for other purchases in the future.
Participation in the VISION program includes all portfolio management and financial planning services of Pinnacle Advisory Group, including our work in coordinating with the client’s CPA, attorney, and other advisors.
VISION is based on leveraging a risk-managed portfolio of publicly traded securities that is managed by Pinnacle and must equal a minimum of 225% of the net amount financed. The program is based on a 10-year time-frame and the amount borrowed can be re-paid at any time with no penalty. All securities are held in custody at Charles Schwab, Fidelity, or TD Bank.