07-12-2021, 06:13 PM
Buy, Borrow, Die - What level of savings do you need to take advantage of?
<!-- SC_OFF --><div class="md"><p>Have some capital gains building in my accounts and recently read about the "Buy, Borrow, Die" approach: <a href="https://www.peoplestaxpage.org/buy-borrow-die">https://www.peoplestaxpage.org/buy-borrow-die</a>.</p> <p>The gist is instead of realizing capital gains, borrow against your assets at a low rate, then pay off all the loans when you die with your (now reset) capital gains. I'm thinking the gaps are probably:</p> <ul> <li>Amount of assets required to secure low enough rates to mitigate risk in investment downside</li> <li>Potential estate tax changes that would eliminate cost basis reset at death</li> </ul> <p>Is anyone using this strategy? Other pitfalls? How's it working out?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/ikeepeatingandeating"> /u/ikeepeatingandeating </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/oiwkzl/buy_borrow_die_what_level_of_savings_do_you_need/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/oiwkzl/buy_borrow_die_what_level_of_savings_do_you_need/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Have some capital gains building in my accounts and recently read about the "Buy, Borrow, Die" approach: <a href="https://www.peoplestaxpage.org/buy-borrow-die">https://www.peoplestaxpage.org/buy-borrow-die</a>.</p> <p>The gist is instead of realizing capital gains, borrow against your assets at a low rate, then pay off all the loans when you die with your (now reset) capital gains. I'm thinking the gaps are probably:</p> <ul> <li>Amount of assets required to secure low enough rates to mitigate risk in investment downside</li> <li>Potential estate tax changes that would eliminate cost basis reset at death</li> </ul> <p>Is anyone using this strategy? Other pitfalls? How's it working out?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/ikeepeatingandeating"> /u/ikeepeatingandeating </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/oiwkzl/buy_borrow_die_what_level_of_savings_do_you_need/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/oiwkzl/buy_borrow_die_what_level_of_savings_do_you_need/">[comments]</a></span>Kind Regards R