ADVANCED STRATEGIES • STEP 4 OF 4
Check It: Final Quiz
Knowledge without action is futile. Action without knowledge is dangerous.
Ancient Proverb
Test your understanding of the borrow vs sell strategy. Pass with 80% to complete this module!
Your Learning Journey
Your Learning Journey
This Quiz Takes: ~10 minutes
10 questions testing your understanding of collateral loans, tax treatment, and risk management.
Passing Score
Get 8/10 correct (80%) to pass. Don't worry - you can retake it as many times as needed!
Ready for the Boss Quiz?
10 questions. 5 minutes. Game-show style. Can you beat the clock?
Rules:
- •Answer all 10 questions in 5 minutes
- •No going back to previous questions
- •Score 80%+ to pass and get your certificate
- •100% = Perfect Score badge!
Your Action Plan
Now that you understand the strategy, here's how to implement it safely.
Identify Your Collateral Assets
List your assets that could serve as collateral:
- • Bitcoin/crypto holdings (held >12 months for CGT discount)
- • Physical gold/silver in allocated storage
- • ASX stocks in your portfolio (blue-chip preferred)
- • Property equity (if you own a home)
Note: Only consider assets you plan to hold long-term regardless. This isn't a leveraged speculation strategy.
Research Lenders
Compare at least 3 lenders for your asset type:
Crypto:
Ledn, Nexo, BlockFi
Gold:
Perth Mint, ABC Bullion
Stocks:
CommSec, NAB, Interactive Brokers
Property:
CBA, Westpac, ANZ
Calculate Your Safe LTV
Use the calculator from Step 3 (Try It) to determine:
- • How much you can borrow at 30-40% LTV (conservative)
- • Expected interest cost vs tax saved
- • Break-even point (how much asset must appreciate)
Safety Rule: Never borrow more than 40% LTV unless you have significant cash reserves to add collateral if needed.
Set Up Monitoring System
Before you borrow, establish a monitoring routine:
- • Weekly: Check collateral value and current LTV
- • Alerts: Set price alerts if collateral falls 20%+
- • Cash buffer: Keep 6 months interest + 10% collateral value in reserve
- • Trigger plan: Know exactly what you'll do if LTV hits 60%
Consult Professionals
Before implementing, speak with:
- • Tax accountant: Confirm interest deductibility for your specific use case
- • Financial advisor: Review overall strategy fit (if you use one)
- • Lender: Understand their specific liquidation terms and LTV policies
Reminder: This content is educational only. We're not licensed to provide financial advice. Always seek professional advice for your specific situation.
Borrow Strategy - Check It: Complete
- Borrowing against assets is powerful but risky. Liquidation risk, interest costs, and leverage amplify losses.
- This strategy works best for appreciating assets with low volatility (property, blue-chip stocks, gold) held long-term.
- Always maintain a safety buffer: borrow at 30-50% LTV even if lenders allow 70%.
Homework
After completing this module, do you feel confident using collateral loans? What's your biggest concern or question about this strategy?
If you're serious about implementing this, book a consultation with a financial adviser who understands collateral lending. Discuss your specific assets, risk tolerance, and tax situation before proceeding.