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Why Use M1 Borrow

M1 borrow allows you to stay invested, and not worry about liquidity.

Users have borrowed more than $10 million, and that number keeps growing...


Product Benefits 

- There is no credit check.

- One of the lowest rates on the market

- Allows for vey flexible repayment, with no penalty for early repayment

- This loan can be done instantly with next business-day funding when it is connected directly to M1 Spend

- Interest on M1 Borrow may be tax-deductible against your investment gains and help lower your taxes.


Reasons to Borrow 

1. John is a 38 year old accountant who is married and files his taxes jointly

  John is a higher earner and is due a $18,000 tax bill

        His options for paying this is as follows:

          - Liquidate his investments and pay taxes on earnings

          - Dip into his savings/rainy day fund

          - Utilize M1 Borrow

With M1 Borrow, John can borrow against his portfolio at a low 4.25% rate, avoid selling his securities and realizing capital gains. John can also deduct the interest expense from M1 borrow in 2019


2. Bill and Linda purchased their dream home 5 years ago. Their home is currently due for some renovation which could cost excess of $25,000. Currently Bill and Linda have a joint brokerage accounts of ~$150,000.

          - Bill and Linda are considering applying for a Home Equity Line of Credit (HELOC) that has a current rate of 6.5% and requires a new appraisal of their home and a hard credit pull.

          - With M1 Borrow, this allowed Bill and Linda a cheaper option, immediate access to their money and flexible payment schedule would be to borrow against their taxable account.


3. Sean M. decided that his M1 Invest account was performing very well. 

          - Liquidate his investments and pay taxes on earnings

          - He decided to leverage his portfolio to purchase more stock.

          - With M1 Borrow this allowed him to invest on margin and amplify his gains. He gained more money than he would have without M1 Borrow.   


Understanding the Benefits 

Become comfortable with M1 Borrow! This type of lending has been around for quite some time, but it has typically been reserved for the wealthy. M1 is making margin lending accessible to more people. We know it’s a different way of borrowing money and it takes time to understand how it works, but we believe it’s a better way to borrow money.

Reach out if you have any questions! We’re happy to help and want you to feel comfortable with you M1 account.



Using margin involves risks: you can lose more than you deposit, you are subject to a margin call, and interest rates may change. To learn more about the risks associated with margin loans, please see our Margin Disclosure. M1 Borrow available on margin accounts with a balance of at least $10,000. Does not apply to retirement accounts.

Investment interest expense may be deductible if you itemize deductions and other criteria are met. M1 does not provide tax advice and we suggest you consult a tax expert regarding the deduction of investment interest expenses. 

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