Buy. Borrow. Die — How the Rich stay rich
Learning to invest like the 1%
You might have heard of the saying wealth is control by the hands of a few. In this post, I will present to you the way the rich remains rich and how we can apply the same principle to increase our net worth.
Morgan Stanley reported that the wealth management clients has $68.1 billions of security based (non-mortgage) loans. This number is twice as much as it was in 2016. Bank of America reported that they have $62.4 billions home security based loans. That poses an interesting question: Why are the wealthy borrowing money?
If they already have and make a lot of money, why do they need to borrow money? The answer to that question is fascinating, a technique that has allowed them to control this wealth without ever selling their wealth. This is how generational wealth is passed down and how most powerful wealthy families of America are created. Fortunately, this technique can be applied to everyone. You do not need to be rich to take a profit from knowing this information.
The technique is described in three simple steps: “Buy. Borrow. Die.” This phrase was created by Edward McCaffery, a tax law professor at the University of Southern California Law School to describe how the Rich has hacked the American tax system.
