Borrow, Buy, Die.
That’s how billionaire’s avoid paying much in taxes. When your assets are growing quickly (10%+ / year), you don’t need to sell stock or pay yourself a salary, you just borrow money at 2% interest / year.
If you have significant wealth, and it continues to grow, you can take advantage of borrowing money at low cost. If there is a downturn in the economy or the market, you have enough wealth to “bridge the gap”. In other words: you can take advantage of “average returns” over decades because you have the risk capacity.
How does this apply to the rest of us?
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