Ally’s Securities Income Program?

Sharing is Caring!

by G_Dubb

I received an email about Ally’s Securities Income Program where you can “loan” out your shares and get interest back in return. I can still sell the shares at any time.

I watching the video about it and read through the information but am still having a hard time understanding the negatives vs positives. Here are two of the downsides that Ally lists:

  • You relinquish voting rights on your securities while they’re on loan.
  • You’ll receive a substitute payment of cash instead of your regular dividend payment if your security is on loan. This may result in a higher tax consequence for that security because dividend income is taxed at a different rate.

For more info here’s the link to Ally’s site about this

Based on this information, is it worth it to enroll for somebody who has ~$50K worth of stocks with Ally and is considered middle-class?





Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.