Buy, Borrow, Die Patrimonial Capitalism works a lot better if you’re doing it at a low “skim” rate. I’d avoid the life insurance as a “tax saving” deal. {{ LOL }}
intercst
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This YT explains the concept, and adds caveats about value of collateral assets dropping.
Peleton CEO borrowed against 20% of his shares, PTON stock price dropped and he got a margin call.
Interesting.
ralph
1 Like
It’s best to avoid debt if it’s possible to attain your financial goals without it. That’s why I like qualified dividends and capital gains in the 0% tax bracket. A $120,000 tax-free annual income for a married couple is a fortune if they don’t have any debt (i.e., paid for home and automobiles), and live in a state with no state income tax, and low property taxes. I guess nowadays you’d want to add low insurance and maintenance costs to the list.
intercst
4 Likes