Need to get your client thinking about lowering their leverage risk? Try these tips.
If a client has taken out a loan, or loans, to invest, ask for regular updates on her personal financial situation and closely monitor how her investments are doing. If she isn’t getting enough of a return to cover the lending costs, if she’s struggling to pay other bills, or she’s concerned about her income, make sure you have a plan to help her wind down those investments and pay off the loan. Or, help her find other cash flow options if it’s reasonable to expect the investments have potential to appreciate and be worth the costs.