Buy, Borrow, Die: The Wealthy's Secret Strategy Revealed #shorts

[0:00]what is this strategy that the wealthy do different than So it's called buy by die. Rich people, they go buy that shitty duplex I told you about. It's ugly. and they buy, you know, something not that exciting, maybe a full portfolio of index funds. Nothing, nothing that they can show on their Instagram. Okay, but they buy these assets. And what people don't realize is that the folks at the bottom, they work really, really hard to buy stuff. But before they can buy that stuff, the government takes a huge cut because that is income. Rich people, they know that they're going to buy these assets, all right? And this is with money that they did have to pay that tax on, but they want to stop paying that tax as soon as possible. So what they do is they then build this asset portfolio that is monstrous. And then they borrow against it. They are going to borrow against it because guess what? Debt is not counted as income. You don't get taxed on debt you take out. They use that debt and then they live their life. They get to do their fun things and they oftentimes get interest only loans, so they're very small payments that you actually have to make back. And then the dying part, very key, okay? The estate plan is so, so key because what they do is they have this trust, okay? So this trust holds all the assets, and then that trust passes those things, those amazing money-making things down to the next generation. Tax-free. It is inherited at something called a stepped-up basis, okay? So if you are my dad, okay? You buy something for $10. It appreciates. appreciates to $1,000. You give it to me during your lifetime and I sell it. The gain on that sale is $990 and I have to pay taxes on that $990. But if I give it to you when I die. If you are already dead, okay, yeah, okay? And I get it, the asset gets remarked to market. What's that mean? So the cost that I bought it at is 1,000. So it's not the 10 that you actually bought it at. My purchase price is 1,000. So if I buy it at 1,000, because I inherited it from you at 1,000, and then I immediately sell it, what is the gain on that? Nothing. It looks like I made no money. Wow. I don't pay taxes on it.