Stock to Cash" Planning Vehicle Significantly Reduces Market Risk

A new and exciting tool is now available to investors allowing them to take full advantage of stock market opportunities while eliminating 90 percent of their downside risk.

(PRWEB) January 9 2004--A new and exciting tool is now available to investors allowing them to take full advantage of stock market opportunities while eliminating 90 percent of their downside risk. Emerging Moneys Stock to Cash (S2C") program uses a unique derivative-based non-callable and non-recourse stock loan that offers investors 90 percent of the current value of their stock portfolio in cash, without triggering any upfront capital gains tax and without obligating the investor to ever repay the loan. Moreover, all interest accrues so there is no ongoing cash flow commitment.

This is not your fathers loan", says Emerging Money President & CEO Robert K. Strauss, Esq. You pay back nothing unless you decide to recover your stock portfolio because it has performed well in the market. Otherwise, keep the 90 percent and any planning vehicle that the loan proceeds may have funded." Unlike collar loans, variable prepaid forwards and other hedge-related techniques, Stock to Cash loans do not limit the potential upside return, so investors can recoup their entire appreciated positions after repaying the loan.

Financial advisors are quickly adopting Stock to Cash as a funding mechanism for important planning strategies. For example, S2C loan proceeds are being gifted out of the estate and then being used to purchase life insurance. Not only will heirs receive the death benefit income and estate tax free, but if the collateral portfolio appreciates, they will also receive any positive equity that exceeds the loan balance. Even if the portfolio crashes, the life insurance will remain unscathed since the borrower has no obligation to pay back the loan and the lender has no recourse against the policy.

S2C loan proceeds are also typically used to fund deferred annuities, immediate annuities and many other suitable financial products, depending on the particular needs of the client. It should be noted, however, that Federal Reserve Regulations prohibit reinvestment of S2C loan proceeds back into margin stock." Therefore, loan proceeds cannot be used to buy marginable securities, mutual funds or convertible bonds.

According to Timothy Houchin, VP Sales/Marketing, Our Stock To Cash product has proven so successful that we cannot help but recognize the global potential. We are now embarking on a campaign to introduce the program to financial advisors, tax professionals and CPA's worldwide." For more information about Stock to Cash, please contact Emerging Money Corporation at (800) 396-3622 ext. 206 questions@emergingmoney.com or visit the website at www.emergingmoney.com

* Emerging Money Corporation and its employees do not provide specific legal, accounting, investment or tax advice. Any financial concepts shared herein are of a general nature and intended for educational purposes only. Prospective borrowers must receive written approval from their personal financial advisors to determine whether this program may be suitable based on their specific financial needs and objectives.

###