this post was submitted on 24 Aug 2025
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Memes
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Memes! A way of describing cultural information being shared. An element of a culture or system of behavior that may be considered to be passed from one individual to another by nongenetic means, especially imitation.
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They pay very low interest on the loans, and they only pay taxes on the stock if they sell (and realize the gains). If they die, their heirs don't pay taxes because of the step up basis rule.
I'm sure it gets more complicated than that. "Buy borrow die" is a common strategy
I'm not rich enough to know the details. You can probably find answers online since it's not like a secret. I think if the amounts are large enough, the rates can be lower so the bank still makes money. Also the collateral is worth more than a house, I think. Usually. More liquid.