Buy, Borrow, Die: How Wealthy Americans Leverage Paper Wealth Without Selling
I recently came across a Wall Street Journal article that delves into a strategy frequently discussed on r/fatFIRE: using portfolio-backed loans at ultra-low rates to access cash and minimize taxes. The piece highlights how founders and CEOs can tap into their net worth without selling shares and risking a loss of voting control.
One notable point the article covers is the ability to borrow against a substantial equity position rather than liquidating it. However, it overlooks an important tax consideration: the step-up in basis that typically occurs at death, which can significantly affect the eventual tax treatment of these gains.
Nothing in the article appears unfamiliar to this community, but it’s interesting to see the topic gaining broader attention and exposure.
