How Do Billionaires Avoid Taxes? 

No way

The lenders will make some money from interest, but you are overestimating the interest rate. This isn't like borrowing money from a bank. It's collateralized borrowing where the interest rate is significantly low as long as the asset you are borrowing against doesn't drop below a certain market value. It will take decades before the total compounded interest exceeds the 25% tax. As long as the stock goes up in value, the borrower can sell less shares in the future to pay back the loan compared to today. But a lot of wealthy borrowers won't do this. Why? It's because of the "buy, borrow, and die" concept. You can pass on the assets that you borrow against to someone in your family, who can then sidestep capital gains tax liabilities upon inheritance.

U have a great point

Ur not wrong. Hence the reason why u wanna always buy assets if u borrow money (houses, business etc.) not on cars, clothes etc. the appreciation in value of the asset should make it worth it all the time

@@miiiiikeee but... when they sell the shares to pay off the loan, dont they need to pay tax on the shares they sold?

I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors I speak from experience.

True, I’m quite lucky exposed to personal finance at early age, started full time job 19, purchased first home 28, got laid-off work at 36 amid covid-outbreak, and at once consulted a well-qualified advisor to stay afloat. Thankfully, my portfolio has maintained steady growth ever since, amassing nearly $1m after subsequent investments to date.

this is great! think your advisor would get on the phone with an unknown? i'm in dire need of proper portfolio allocation

Finding financial advisors like Monica Lisa Payne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

Thanks for this. could easily spot her website just after inputting her full name on my browser. she replied my inquiry and we scheduled a consulting session sometime tomorrow.

They literally do this until they die.

Pay back the loan after you die. The stocks that are borrowed against will have their cost basis adjusted to their current value on the day that you die, and whoever inherits the stock can basically sell it for zero tax to pay back the lender.

They buy assets with the loans. Things that make them money and pay for them selves.

exactly my thoughts, what money do you spend and get to pay the loan?

Then you could sell less shares to pay back the loan if you wanted to, since they are worth more in terms of dollars.

500k

You only walk away with ,1/3 after taking the lump sum and taxes​@@jps101574

😂 I didn’t even realize how degrading that shit was until I read this