Crash Course on the Buy, Borrow, Die Tax Strategy

Рет қаралды 6,910

Күн бұрын

Пікірлер: 36

@n1chr0me6 4 ай бұрын

Hi Sharon, what percentage of your total worth is in stocks, and I think you mentioned you only borrow against ~30-40% of equity value?

@marksimon8393 14 күн бұрын

I love your streak forward, strategy, no fluff, take action and win

@robertg1556 27 күн бұрын

The interest cost is usually a lot less than the tax you would pay if you're making a decent return. I borrowed, invested and know exactly how much interest I'm paying for the three months of the quarter. Thanks for your logical advice.

@perennialpride7448 4 ай бұрын

Yes I do like the this strategy. Another layer I’ve used is overfund a permanent life insurance policy to borrow against and then invest in cash flowing assets. Better than using my own cash. Adds some additional complexity and cost initially but can powerful in the long run to replace the bank.

@jvburnes 4 ай бұрын

Thank you Sharon. It answers a lot of questions.

@TheRealKrzysztofMarzec 4 ай бұрын

Great strategy. Love your approach.

@jcotton4672 3 ай бұрын

Very insightful. Thanks!

@liaoweien 4 ай бұрын

amazing content, that will be great if you can go in depth about using the gain to offset the SBLOC interest (e.g tax return, tax form, requirement). Thanks in advance.

@FIRE_DrNinjaTurtle 4 ай бұрын

Just love this strategy

@303Estates 4 ай бұрын

Great Video!! From comments below, here is my 2 cents: Keep in mind, if you are using high dividend ETF's for income, 100% of your assets will be paying you, so in a way you are double dipping and making money on your assets from boring against assets, dividend income and possible growth of assets. win-win-win!

@blue-vz5xx 21 күн бұрын

I think the reason that people regularly ask how the loan gets repayed is they are uneducated in this strategy and see it as a replacement for their income even for personal expenses.

@dddooley 4 ай бұрын

Greetings Awesome information

@Michellexxx111 4 ай бұрын

Love your content

@gdelacruzjr 4 ай бұрын

Great info

@leongreenwood6522 7 күн бұрын

What in your opinion is a better way to make money if not W2?

@jaypark7207 Ай бұрын

Would this strategy be a potential way to pay off the loan balance of a mortgage if you’re able to?

@rpi-re 4 ай бұрын

Aren't there restrictions on SBLOC's use? I understand you can't invest in the stock market from SBLOC proceeds.

@partsunknown2852 18 күн бұрын

How can they tell you what you can and can’t use it for? Genuinely asking I’m new to this. But that seems lame.

@jaypark7207 Ай бұрын

Do you ever have to repay the loan principal if the value of your securities is enough to satisfy the collateral requirements of the bank?

@RealELconomics 4 ай бұрын

Morning coach

@Thebrokeragemoneymachine 2 ай бұрын

Minimum is $2000 SBLock.

@mm-it7tv 2 ай бұрын

can you talk about how your perspective compares to Ramit Sethi vs Dave Ramsey, what approach should people focus on depending on their financial status?

@sharonwinsmith 2 ай бұрын

My content is for high earners/high net worth or people who want to understand the tax and investment strategies the wealthy use. Dave Ramsey provides advice for people with low income or those who need financial discipline. I don't know anything about Ramit Sethi other than he wrote a popular book a few years ago.

@mm-it7tv 2 ай бұрын

@@sharonwinsmith would you say that the mindset and strategies you advocate are at all useful for low income/low financial literacy people once they master the basic concepts Dave Ramsey preaches aspire beyond their current situation?

@sharonwinsmith 2 ай бұрын

That's a great question! I would say someone needs to have a really good understanding of basic financial concepts. I definitely think someone can start out with limited financial literacy and build enough knowledge and wealth to start getting into more sophisticated strategies. However, with that said, the concepts I discuss are for those who are really willing to invest the time and effort to learn. This stuff isn't easy and it certainly can be very risky for someone who doesn't fully understand what they are doing and the risks they are undertaking with each of these strategies. Most of these topics are things most CPAs and financial advisors don't know/understand.

@CogitoBcn 3 ай бұрын

Interesting video. Too many words. Too few numbers.

@andrewbiggs8435 4 ай бұрын

Buy, borrow die seems to make sense IF you have more than enough money to support yourself in retirement and want to leave money for your kids (charity, etc). Since you can only borrow up to around half of your assets, this means you can only spend half your assets. If you saved exactly enough to support yourself in retirement then this will leave you short, even if it is very tax efficient. However, if you've saved more than enough -- as a lot of people have, for various reasons -- then this makes sense.

@sharonwinsmith 4 ай бұрын

This is the type of comment that shows you do not understand the strategy. The money is still growing even if/while you borrow against it. You still own the underlying asset which is still appreciating at the difference between returns less interest on the loan. In a typical environment, that should be at a rate of at least >5% net returns. This is before even taking into account the tax the person would have to pay if they weren't using this strategy and were instead selling assets. When you sell the asset - you pay tax on the gain AND lose any future appreciation on that part sold. With that said, this is a wealth building strategy. This is not a strategy for people who are (very dangerously) saving just enough for retirement.

@andrewbiggs8435 4 ай бұрын

@@sharonwinsmith You may be right, but I think you'd have to abstract the tax strategy from the investment strategy. Say, does buy borrow die produce higher lifetime spending vs a traditional drawdown strategy that's coupled with investing with leverage? I don't know. But I agree that this isn't aimed at people who are just thinking about optimal retirement planning. Thx!

@303Estates 4 ай бұрын

Keep in mind, if you are using high dividend ETF's for income, 100% of your assets will be paying you, so in a way you are double dipping and making money on your assets from boring against assets, dividend income and possible growth of assets. win-win-win!

@melvinjohnson-lg8iq Ай бұрын

@@sharonwinsmithNo you don't know wtf you're talking about!! 😂. Another idiotic KZbinr babbling about things they know nothing about!! 😂 Folks please stop following these clowns!! 🤡🤡🤡🤦‍♂️

@andreavandekleut6379 3 ай бұрын

very interesting , I will check out the B,B,D. strategy, some more ,with getting a loan on my equity of my current home, and buying a rental , now that homes are coming down in price. Then using the loan proceeds payments, as a tax deduction ,(even though my new tenants will pay the payments ) Also I 'll be making income on the cashflow beyond the loan payment , i 'll start small , (one rental) and keep doing this again , after some time , and get a loan on both assets combined, for the next rental. once i get the full experience of this , i can go bigger.I own NO stocks , but get going with dividend paying kings , once i have the extra cash .