The wealthy avoid taxes using the “Buy-Borrow-Die” strategy:
Step 1: Buy assets and hold (to avoid capital gains taxes from selling)
Step 2: Borrow money from Banks for living expenses using assets as collateral, at low interest rates (while assets appreciate)
Step 3: Interest paid on borrowed money is a tax write off
Step 4: Wait and repeat. The long-term gains on assets outweigh the short-term cost of borrowing money
Step 5: Pass assets to kids, tax-free (with stepped-up basis) and repeat
Andrew Lokenauth /
npub144…450vp
2024-01-14 12:55:05
Author Public Key
npub144rtt3jc6225m4gcpeftdgekm9rsssrwspnkwtyvqampfk6wmzvs4450vpPublished at
2024-01-14 12:55:05Event JSON
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"content": "The wealthy avoid taxes using the “Buy-Borrow-Die” strategy:\n\nStep 1: Buy assets and hold (to avoid capital gains taxes from selling)\n\nStep 2: Borrow money from Banks for living expenses using assets as collateral, at low interest rates (while assets appreciate)\n\nStep 3: Interest paid on borrowed money is a tax write off\n\nStep 4: Wait and repeat. The long-term gains on assets outweigh the short-term cost of borrowing money\n\nStep 5: Pass assets to kids, tax-free (with stepped-up basis) and repeat",
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