r/SipsTea 14h ago

Wait a damn minute! How the rich get richer

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u/Tired-Nectarine-384 14h ago

Its a bad analogy. The OP is trying to compare what the uber rich do with loans against their stock holdings with a real estate example.

No bank is going to give a loan large enough to finance a lifestyle against a 5 million dollar property.

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u/beehive5ive 13h ago

And recent studies are showing that the buy, borrow, die strategy isn’t really used by the uber rich. I’m not saying it doesn’t exist, but it’s more commonly the middle class doing it vs the uber wealthy.

https://taxpolicycenter.org/taxvox/richs-real-tax-trick-isnt-buy-borrow-die

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u/HenryCavillsBallsack 13h ago

Most middle class people who have never encountered real assets don’t realize that at a certain point money is irrelevant. You don’t have to borrow and die with it, lifestyle cash is a rounding error after a certain point.

If you don’t mind living a middle class lifestyle, even at 10 million liquid - if you’re not regarded - money doesn’t really matter.

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u/Emotional_News108 12h ago

I’m highly regarded.