Buy, Borrow, Die Tax Strategy course ▶ taxplanninghq.com/buy-borrow-die/

I love watching your videos! They're very helpful! Is there a reason why you never mention HELOCs when using this strategy? I'm still pretty new in my investing career, but I've used a HELOC and I found it helpful. Thanks again!

@aceflamez00

12 күн бұрын

Cause HELOC has a pay down period an also delinquency of a HELOC payment could impact your credit. SBLOC is independent from both of those factors since you can hold the loan for life and your credit is unaffected.

Can you explain simple interest vs. apr interest that you might get from an equity dividend? I have a 1.2% margin on SOFR and have utilized it and paid it off. About to jump into it again to buy into a cash flow self storage unit development. Ty.

How do you avoid tax in an investment fund? Right now I’m looking for good real estate funds to invest in (I’m accredited), but as I understand it any of the mailbox money I’d get from it would be taxed at normal income tax rates. Follow up question would be how to find a good real estate fund? You say to avoid YTers but outside of YT idk where to look. I almost went for Ken McElroy’s fund but you spooked me.

What happens to the loan when I die? I've been through the video twice and didn't hear anything about how my estate handles the loan. I know my heirs get a stepped-up basis in the stocks I own, but won't the stocks have to be sold to satisfy the loan? Is that not a taxable event to the estate?

Hi Sharon. I enjoy your content. As I research the SBLOC it seems to me that M1 finance is easier to use than IBKR. M1 also allows up to 50% limit and a 25% maintenance requirement. On the Interactive Broker site, I cannot even get the "clunky" calculater to work properly. Also, question, if we get dividends from our SBLOC securities account are they treated differently by the IRS? I was reading something about that but I'm confused if the different treatment is from the account OR if its for someone who buys securities on margin.

Is the interest of the margin loan tax deductible ? Thank you

Hi..i would like to ask if non us residents who open LLC in US to trade in stocks and have certain amount of shares..are they eligible for SBLOC as non US residents?

Whats the minimum net worth needed to use the buy borrow die strategy ?

@Rnjeazy

12 күн бұрын

You can borrow with even 1000 dollars invested

@aceflamez00

12 күн бұрын

It’s 2K and that gives you like 1K to borrow due to reg t 50% rules

@P.I.P.E.L.I.N.E_Podcast

6 күн бұрын

You guys are talking about M1 Borrow right?

@aceflamez00

6 күн бұрын

@@P.I.P.E.L.I.N.E_Podcast You can do it on M1 or Interactive brokers, they usually have the lowest rates. Schwab, fidelity, and etc sucks.

Sharon, what are your thoughts on using SBLOC to leverage up your S&P500 position to 1.25x or even 1.35x? Do you view any level of margin leverage prudent?

@andersonandrew112

13 күн бұрын

I don't think she's prompting buying stocks on margin. That's something else.

@aceflamez00

12 күн бұрын

Just buy upro instead

@TinkerToFIRE

12 күн бұрын

I use SBLOCs in my stock portfolio to amplify my holdings. The SP500 doesn't create the best cash flow but it still arbitrages profitably long term. Borrow at 6-7% and it averages 8-10+%. To see if I can afford the debt I look at the interest payment plus I pay an additional 20% to speed up the pay down. For example, 100k borrowed at 7.25% would be around $605 per month in interest. By paying a little extra up to $720, it not only pays itself off 2-3x as fast but even if rates stay at 7.25% my average interest over the 24 years it would take to pay off is 4.65%. So I use the 4.65% instead of the 7.25% when seeing if it is profitable. I also invest in some dividend growth stocks that both appreciate but have a growing dividend that can be used to offset payments. Stocks like AAPL, MSFT, TXN, HD, LOW, COST. Also, another thing to think about is usually you can only borrow 50% of your portfolio. So if you have 200k you can borrow 100k. So say you are getting 3% dividends overall you are earning 3% on 300k to pay 7.25% interest on the 100k. So I look at it as if my original portfolio value is like a paid off rental property that can help pay down the 2nd rental property. Good luck!

Buy, borrow die strikes me as a tax efficient and asset-preservation efficient strategy, but maybe not a retirement efficient strategy. If you already have more wealth than you'd need to retire comfortably on, then buy, borrow die makes sense -- you pay less taxes and your heir net more wealth. But if you actually need that money to retire on it may be less efficient, because you can only borrow up to around half your assets, while if you simply drew them down in retirement you can spend them all. For the super-rich that won't matter, but for those a few notches down - who may still have a lot of assets in dollar terms -- it could. The tax efficiency means you wouldn't have only half as much, but overall it's probably less.

I would love to create content with you.. how can we get in contact?

How do you not pay taxes on the real estate funds that I’m assuming pay large dividends?

@sharonwinsmith

8 күн бұрын

Real estate funds don't pay dividends