Thank you for your kind words! Appreciate it!

Value usually doesn’t run up numbers . Great video !!!!❤

Thank you for watching and your kind words! 😀

Up to almost 5k subs as of June 2024. This is my first view on this channel and I expect it’ll keep growing if she keeps putting out quality content.

5k now!

Awesome! I also do a good bit of the VOO & real estate mix strategy. Thanks for watching!

Why not vfiax?

@@CrazyCamo Can't do options on it to protect positions nor to make extra income. Can't buy or sell it at better prices taking advantage of short price spikes in the middle of the day.

I've been investing this way for quite a while . Has worked out well .

Take into consideration stocks that pay a dividend, so now you are getting paid while you hold + you can borrow against the stock + with opportunity for stock to go up in value.

I would check out of the course as it covers using Buy, Borrow, Die with real estate. taxplanninghq.com/buy-borrow-die/

Thanks for watching!

Fantastic!

👍👍

@@sharonwinsmithhow do you repay the original loan?

Thank you for watching!

Glad it was helpful!

Thank you so much!

Thank you for your kind words! :)

I've been getting a lot of similar questions. I have a video coming out in a few weeks that will address this point. But in the meantime, it's hard to answer this without knowing which way the strategy is being used. If you are doing an SBLOC for example, you don't have to make any interest or principal payments if you don't want to. So, firstly - no, you don't necessarily need a secondary source to make payments. Nevertheless, even if you do have a secondary source of income to use for making payments (if you choose to pay down principal and/or not let the interest accrue for an SBLOC or you use the strategy with a non-SBLOC type of loan requiring current payments), why would you assume the person is paying tax on the secondary source of income? I have tons of different income streams and I hardly ever pay any income tax. I would never invest my money or have a situation where I had any source of income that was going to be tax inefficient. The best way to use the BBD strategy is the double-dip approach. In that case, you borrow against Asset 1 and invest in Asset 2. Hopefully, you are investing your money in a way that you are not paying material tax on earnings (Asset 2 in this case). Here is a link to a video where I talk about a strategy you can use this with where you shouldn't be paying any net tax ▶️ kzfaq.info/get/bejne/acCenbGVvJm9k58.html The majority of people are probably not going to use this strategy the way I do or the way Jeff Bezos does. They are likely to have a high-taxed source of primary income (e.g., W-2 job) and then use the BBD strategy to invest their money in a way they never pay tax again on the future returns. In any event, you can set up this strategy in a way that you literally never pay a dime of income tax again.

The dividends or interest pay the loan. I'm assuming the assets generate income

Thank you so much for your kind words! 😀

I've always thought of the SBLOC approach to implementing Buy, Borrow, Die as a better approach than the Infinite Banking strategy to accomplish the same objectives. With that said, I think Infinite Banking is generally a scam with the way it is used in practice and marketed by insurance agents and influencers.

Thank you for watching! Will have a lot more on these topics in the future as well.

Thank so much! Appreciate your kind words!

Thank you!!

It depends on how you are using the strategy. I am working on a course that will address a lot of these questions. I hope to have that out in the next few weeks. Thanks for watching!

SBLOCs commonly don't require you to make current payments of principal, and the interest can accrue. There are a number of different reasons and situations why one would use the Buy, Borrow, Die strategy.

@@sharonwinsmith does this mean as long as the assets continues to appreciate, you never have to pay it back?! 😲

@@sharonwinsmith can you make a follow-up video expanding on how SBLOC's work if they dont require you to make current payments of principle? It just seems like a weird loan strategy and i think it could use further explanation for those interested in learning more.

​@edwardmacnab354 this video is over 40 mins long... if you don't get the method, it might not be for you.. video is perfect.

But you still have RMDs on IRAs....so I am not sure how much benefit is there.

But you pay taxes on the funds going into the Roth account. You don’t pay when you pull funds later on, but you do pay upfront.

@@mortviolette284 Agreed. If I had one piece of advice for any young person, it would be to fund a Roth while earnings are low, i.e., taxes nearly non existent. It could also apply to someone who is unemployed. The trick is to save the money over time, and put it in the Roth IRA during a low earnings period. I did not have that option...too old. But, I have seen 10,000 turn into 100,000 in 30 years in a non IRA account, meaning, I have been paying taxes on those gains for 30 years.

Only 7k a year tax free though, but sure, it will compound…

Thank you for watching! 👊

Thanks for watching!

I never pay down my SBLOC and let the interest accrue.

How long is the initial loan for? Doesn’t the loan become due after a 12 or three year period?

Great way to use Buy, Borrow Die!

If you want to pay it while you're living you pay it down little by little or if you used your loans correctly and bought an asset, the asset should cashflow the loan. Otherwise, your dividends will most likely cover the interest of whatever loan you have against the port assuming you stay within safe ranges of borrowing (15-25%). When you die who ever gets the portfolio could use to sell at stepped up basis and pay off the loan without paying taxes..

If you are borrowing against shares using an SBLOC, you don't need to pay off the loan.

I would never invest in an asset that wasn't going to steadily appreciate over time. I don't care about temporary downturns with the Buy, Borrow, Die strategy. You have to educate yourself on the strategy and the risks involved and make smart decisions.

Thank you for watching! The step up is the way the law works when someone passes away. So the heir's basis is automatically stepped up to the fair market value of the asset on the date of death. This happens automatically by operation of the way the law works. However, there may be some tax filings required for the estate itself. You don't technically need to apply for the step up. But depending on the size of the estate, how the estate is set up, and what assets the estate has, there could be filing requirements for the estate itself.

Thank you for watching - glad it was helpful!

Thanks for watching! I would still never do this with crypto at this point. It is just too new and too volatile. I am a huge crypto bull but think we are 5-10 years out before I would even consider borrowing against my crypto.

Thanks for your response!

Thank you!! 🙏🏻

Yes - you always pay tax when you sell an asset. The key with the Buy, Borrow, Die strategy is that you never sell the underlying asset (or don't sell for a very long time).

You would be liable for the capital gains tax. One reason why you want to make sure you avoid a margin call and have a plan in place in the event you get close to one in the future.

I have the same question

You have to redeploy the money you take out to buy more cash flowing assets. This will ideally pay for your new payment plus more cash flow on top of the payment.

She said you may only have to pay the interest on that loan. I don’t know if that is only for certain cases and if you can do that indefinitely or not. But presumably you are earning a return on your new asset that can pay for the loan on the old asset. And you may still have a little cash flow on top. Even without cash flow your asset appreciation is still there and all the other benefits she discussed. In fact, even if you had to pay that loan off, say, in 12 months you would be better off doing that than paying the taxes you would have had to pay for selling the original asset.

This would all depend on how you are using the strategy.

Thank you very much!

You can set your estate up to do either. You just want to make sure the heirs are getting the step up in basis in shares before anything is sold to pay off the outstanding SBLOC.

@@sharonwinsmith Thanks for clearing that ma'am!

It depends on how you have your estate set up - either approach can be done.

Thanks for watching!

The children can sell the assets and cash out without paying any tax because they get to step up their basis to FMV of the asset on the date of death. However, they could just keep owning the assets and do the same strategy during their life. The best approach just depends on what the underlying asset is and if it is still an asset one would want to own for their lifetime.

That’s a tax deduction

Yes, the whole point of the strategy is to reinvest the borrowed money in a way returns exceed the interest expense (which is very easy to do).

​@@sharonwinsmith If that is the strategy, how will you ever spend any money?

I wouldn't use this strategy if you don't have income. This is really a strategy used by wealth individuals who have built significant net worth.

Can you make a video about borrowing against a Life insurance. How does it compare to borrowing against assets.

Byw, thank you.

I touched on that in the Be Your Own Bank video. I'm generally not a fan of that strategy. kzfaq.info/get/bejne/rcWPjKqnsrmrYHU.html

You can use the funds from an SBLOC however you want. However, putting the money in something getting no return or low return like a money market account might not make financial sense. I doubt the interest you get in a money market account is going to offset the interest you have to pay on the SBLOC, which would make this a bad strategy.

Great question! The strategy can still be great for tax planning purposes because you avoid the income tax. The ability for your heirs to get a step-up in basis upon death is just the cherry on top.

You don't formally transfer the shares - they would still be held in your brokerage account. However, you are correct that they are collateral if using an SBLOC against those shares.

If it is an SBLOC for example, you can set it up where the SBLOC gets paid back or where it remains outstanding and the heirs just continue the same strategy. If shares are sold to pay back the SBLOC, the heirs have a step up in basis so no taxable gain on the sale.

No need, if it is insured!

You would have to pay tax on the gain when you sell the asset. The outstanding loan wouldn't reduce the tax or gain. The key with the Buy, Borrow, Die strategy is that you never sell the asset.

I have a course that is solely dedicated to Buy, Borrow, Die and covers using the strategy with real estate and SBLOC. Feel free to check it out if you want a deeper dive into any of these strategies. taxplanninghq.com/buy-borrow-die/

Correct - you can usually let the interest accrue indefinitely but have to watch out for the margin call threshold as you mentioned.

@sharonwinsmith ok thank you! You have no idea how many months I've been looking for an answer to this!

Yes, you should be able to borrow against ETFs if your brokerage firm allows SBLOCs