When it comes to growing wealth, what you keep is just as important as what you earn. That’s where tax deferral comes in - one of the most underrated tools in the smart investor’s toolbox.
At Binaxity, we’ve baked this principle right into the way I-LOC works. Because building a solid portfolio is important - and allowing gains to potentially compound over time may support stronger long-term outcomes. [2]
What Is Tax Deferral?
Tax deferral simply means you delay paying taxes on investment gains until a later date, usually when you sell the asset. While your money stays invested, those unrealized gains are not taxed.
Think of it like this: instead of paying the taxman every year, you keep that money growing inside your investment, earning returns on top of returns. That’s more compounding, less disruption.
Why Deferring Taxes Supercharges Growth
Paying taxes on gains as they happen pulls money out of your portfolio. It slows growth and breaks the compounding cycle.
But when you defer taxes:
Your full portfolio stays invested
You earn returns on money that would’ve gone to taxes
You gain flexibility on when and how to realize gains, which may result in a lower effective tax rate depending on your future income and jurisdiction. [5]
It’s like letting your investments run with the parking brake off.
How I-LOC Preserves Tax Deferral Automatically
With I-LOC, your borrowed funds are invested directly into ETFs. These investments stay untouched, no active trading, no selling, no tax events. The result? Your gains may remain tax-deferred as long as positions are held and no taxable events occur. [5]
Unlike traditional investing or credit models, where people might dip into their portfolio for cash or incur taxable events through regular rebalancing, I-LOC is designed for set-it-and-grow.
Still Want Access to Cash? Here's the Win-Win
Here’s one of the most powerful features of I-LOC:
Even after your credit line term ends, your investment portfolio remains yours. You’re not required to liquidate it or unwind the tax deferral. You can let that investment keep compounding for years.
Need liquidity? Rather than selling and potentially incurring capital gains taxes, users might explore additional credit options based on their financial profile and portfolio. [2][5]
This way, you:
Maintain tax deferral
Keep your investments working
Access new credit using your portfolio as soft financial leverage
This is the same concept used in private banking and wealth management by the 1%. Now it’s available to you.
A Strategy Used by the Wealthy, Now Productized for Everyone
Tax deferral isn’t new, but it used to be reserved for folks with tax advisors, custom portfolios, and private bankers. I-LOC takes that high-end playbook and turns it into something structured, accessible, and automated.
It’s about applying a disciplined investment strategy that may support long-term financial goals - without interrupting growth unnecessarily. [1][2]
Want to See the Impact of Tax Deferral in Action?
Use our I-LOC Portfolio Simulator at Binaxity.com to see how your credit line might perform over time - and explore how tax deferral could impact your hypothetical results. [3][4][5]
Because earning more is great. But keeping more? That’s the real flex.