6 Assets That Are Good for Buy Borrow Die Tax Strategy

[@davidchen8987]

Great content! Appreciate the education

[@925Prophet]

Yah, love the content!🎉

[@gregm3023]

Asset allocation and holding bonds (TBils). Mathematically it makes no sense to hold fixed assets yielding 4.5% & carry margin interest at 5.83. I am 90/10 S&P500 / TBils (Buffett barbell) and carry margin (buy, borrow, die strategy) at IBQR. 90/10 is aggressive but given negative spread 100% plus equity is more efficient. Appreciate thoughts regarding asset allocation with margin debt

[@KLeeMr]

Great content as always. Thanks, Sharon!

[@gregm3023]

Follow up question to holding TBils with margin debt. TBils can be considered a relative cheap insurance policy insuring against margins 2 great risks: 1)equity value collapse / margin calls and 2) interest rate risk as TBil yields are correlated to Federal Funds rates. Cost of this insurance is the negative spread between TBil yields and margin interest. Thoughts?

[@Michellexxx111]

Great content. So intelligent & strategic. My favorite channel

[@sharonwinsmith]

Thank you so much! 😁

[@eyre1720]

Great stuff as always

[@rpi-re]

Thanks for the great videos.!A question - My understanding was that SBLOC can only be used towards investments other than the stock market (equity, ETFs etc.). Saw stocks as one of the asset categories for SBLOC investments so wanted to double check. Have the rules here changed?

[@dylanmarshall3410]

I love your videos Sharon! Is it possible to borrow against equity in a private company?

[@kahvac]

Good question....how would you issue a lien or collateral needed for a loan..guessing not stocks.

[@DavidBaughier]

You have great content about buy borrow die strategy and I like your direct, matter of fact tone. Well done on these videos. What can we do to support you?

[@jimd1617]

thank you 🤝

[@303Estates]

Great VIDEO!! (as always!! ) - what is your latest thoughts on good place to get low cost SBLOCS? You mentioned interactive brokers a year ago... anything better now?

[@hynoon3357]

Sharon, if I have add'l cash and want to purchase more Stock in my account I am doing my SBLOC, do you buy it your IBKR account basically 'on margin' or do you transfer the fully paid stock in from another broker? Thx. Great Channel.

[@bawbee27]

💯 true - we’re years away from being able to borrow against BTC safely

[@rlabarbe]

About 2 years

[@bawbee27]

@@rlabarbe with this change in administration I can believe it

[@RealELconomics]

Good morning coach ☺️

[@Ron-px2sv]

Wouldn’t you have to pay taxes on the money you would need to have obtained in order to pay back some of the SBLOC? For example, say Elon takes an SBLOC on his stock portfolio for $100,000 to avoid paying taxes in order to pay for food and just the basic needs to live. At some point he needs money to pay some of the $100,000 SBLOC. Let’s say he uses the dividends from his portfolio to pay some of his SBLOC. Would he have to pay taxes on the dividends he earned to pay the SBLOC?

[@threepointonefour607]

If I am understanding correctly, he could die, heirs receive stepped up cost basis and sell at little to no tax to repay.

[@dylanmarshall3410]

From my understanding he could just take another SBLOC loan to pay the first one off as long as the portfolio value has increased

[@Ron-px2sv]

@@dylanmarshall3410I can see that working until a market crash like 2008 and that plan would crumble.

[@dylanmarshall3410]

@@Ron-px2sv ya this whole plan seems like it wouldn’t work in the event of a crash. Now I’m starting to understand why market crashes have such a big impact.

[@AthensBlueG35]

@@dylanmarshall3410 this is the way. But to answer Ron-px2sv, yes, he would have to pay taxes on the dividends he earned. Dividend income is...income, and therefore taxable.

[@Sh0nuff73]

I'm thinking about taking a heloc out and investing in voo. Home is already paid off and the equity just sitting there doing nothing

[@gregm3023]

Most helocs are indexed to the WSJ Prime rate +/- spread (ie 0.25 %). Prime is a variable rate and currently 7.5%. R u confident u can beat a 7.5% risk free return and literally bet the house? 0:04 What happens if the prime rate jumps and your investments tank? Margin loan better option assuming stay well away from a margin call