Retired investor faced a $160,000 cash shortfall when his venture fund called capital faster than expected

A financial independence blogger who retired in 2012 said a venture capital fund called 46% of his $1 million commitment within six months, far more than the 30% he had budgeted for in year one — turning an expected $300,000 outlay into $460,000 and leaving him, in his words, "out of cash," according to Financial Samurai.

A reader suggested he cover the $160,000 gap with a pledged asset line, a loan secured by a brokerage portfolio that typically charges 7% to 10% interest without triggering capital gains tax. He said he'd overlooked that option because being financially independent had taken debt off his list entirely; he has paid off all revolving credit card debt, bought a house in cash in 2023, and hasn't taken a new loan since a $30,000 student loan in 2005.

He decided against the loan, citing the risk that a market downturn could trigger a margin call at the same time new venture capital calls came due, and noting that borrowing $160,000 at 8% would cost roughly $12,800 a year in interest.