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Utilising Strategic Lending

Your existing assets can be activated as a tax-efficient tool to help manage risk, preserve, grow, and transfer wealth, and take on new ventures.
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Insights on Wealth Planning
Wealth Planning Insights

This material is intended for educational purposes only and is provided solely on the basis that it will not constitute investment advice and will not form a primary basis for any personal or plan’s investment decisions. While it is based on information believed to be reliable, no warranty is given as to its accuracy or completeness, and it should not be relied upon as such. Goldman Sachs is not a fiduciary with respect to any person or plan by reason of providing the material herein, information and opinions expressed by individuals other than Goldman Sachs employees do not necessarily reflect the view of Goldman Sachs. This material is not an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. Investing involves risk, including the potential loss of money invested. Past performance does not guarantee future results. Neither asset diversification or investment in a continuous or periodic investment plan guarantees a profit or protects against a loss. Information and opinions provided herein are as of the date of this material only and are subject to change without notice.

Intended Audience
This material is generally intended for eligible clients of PWM and Goldman Sachs Wealth Services, L.P. and/or prospective clients who meet the eligibility requirements to be clients of PWM or Goldman Sachs Wealth Services.

Tax Information
Goldman Sachs does not provide accounting, tax or legal advice to its clients, unless explicitly agreed between you and Goldman Sachs. Any statement contained in this communication (including any attachments) concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain your own independent tax advice based on their particular circumstances. Any legal questions concerning trust and estate planning should be raised to a legal professional.

Entities Providing Lending Services
Loans, including securities-based loans, may be offered by Goldman Sachs Private Bank, a business unit of Goldman Sachs Bank USA,  a New York state-chartered bank and a wholly-owned subsidiary of The Goldman Sachs Group, Inc. Margin loans may be offered by Goldman Sachs & Co. LLC, a wholly-owned subsidiary of The Goldman Sachs Group, Inc., or one of its affiliates.

Securities-Based Lending Important Information 

Loans collateralized by securities may not be appropriate for all parties and carry a number of risks, including the risk of a market downturn, tax implications if pledged securities are liquidated, and the potential fluctuation in interest rates.   If the value of pledged securities declines below certain levels, the client (with assistance from their advisor) may be required to pledge additional collateral, rebalance existing collateral through trading, or pay down the loan to avoid the forced sale of securities to meet collateral maintenance requirements. Subject to applicable law, pledged securities may be sold with or without advance notice to the client to cover the deficiency at the bank’s sole discretion.  Clients should understand the possible adverse tax consequences associated with the sale or pledge of their securities when considering whether a securities-based loan is appropriate for them.

Goldman Sachs Bank USA (“GS Bank”) is a New York state-chartered bank and a wholly-owned subsidiary of The Goldman Sachs Group, Inc.  GS Bank is a member of the Federal Reserve system and Member FDIC. Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).

Collateral-Based Lending Important Information 

Loans collateralized by a direct or indirect interest in real property may not be appropriate for all parties and can carry a number of risks, including the risk of loss of some, all, or substantially all value of the pledged collateral. If the marketable value of the underlying pledged asset falls below a certain level, the Borrower may be required to pledge additional collateral or pay down part of the loan prematurely. Client should understand the possible potential adverse tax consequences when considering whether a collateral based loan is appropriate for them.

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Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).