Why the Wealthy Choose to Borrow
The personal balance sheets of high-net-worth individuals can resemble those of complex businesses. As such, many utilize debt as a tool to optimize their return on capital. Wealthy individuals frequently must decide whether it makes sense for them to fund acquisitions or expenditures using cash on hand, liquidating assets, partnering with another individual or entity or by taking out a loan.
Reasons for Borrowing:
Wealthy individuals often have high expectations and seek best in class advice tailored to address their specific needs. To achieve their financial goals, clients work collaboratively with private bank lenders and their advisors to ensure they receive thoughtful and holistic advice and excellent execution on both sides of their balance sheet. There are several reasons why high-net-worth individuals choose to borrow that will be discussed in this article.
To read the full report, click here.
The Goldman Sachs Private Bank is 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. Loans are offered by Goldman Sachs Bank USA, member of the Federal Reserve System. Equal Housing Lender. 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. Information and opinions provided herein are as of the date of this material only and are subject to change without notice. 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. Information and opinions are as of the date of the event and are subject to change without notice.
© 2023 Goldman Sachs. All rights reserved.
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”)