I like Saylor's talk about borrowing against your bitcoins so you never have to sell. I'm going to work on that over the next couple of years to be ready for any big purchase I may want in the future. Unfortunately I'll be paying the capital gains for this year's sale. I really hate paying taxes, I've been able to avoid it by only selling under the zero tax rate per year but I think borrowing will be a good way to do it from now on.
Please let me know if you figure out a good, cheap, and quite safe way of going about this..
+1 from the other Eddie.
We need to figure out ways to use our present or forthcoming wealth. Being rich doesn't come easy, and it staying rich isn't a piece of cake, either.
Biodom listed some resources a few pages back.
-multisnips-Biodom, it's not the first time you use the word 'bearish' to define JJG's ladder system. Why would you characterize it so?
I just do not want to criticize too much, to each their own.
you would be able to borrow against btc stack, which M. Saylor keeps bringing up, but not many on WO are listening. Such loans are typically used by high net worth individuals (HNWI) against VTI, VOO, SPY, and other whole or broad market ETFs.
Thank you. You got me thinking, especially about the loan thingy. I'd be glad to know more about that. Any pointers will be welcome.
Fidelity:
https://www.investopedia.com/fidelity-will-accept-bitcoin-collateral-for-cash-loans-5091879Basic rate is high, 4.5%, but i am sure this will go down.
I would be shocked if Coinbase would not do the same soon after the IPO.
Personally, i would never go above 20% LTV, maybe just 10% (in case of our typical 80% drawdown).
The advantage-NO cap gains tax. In fact, maybe deductible interest (or not, hard to say)
Borrowing Against securities (better rates right now):
https://www.schwab.com/pledged-asset-lineLibor is 0.11%, so the best rate is 1.86%.
Say, you've got, hypothetically, $10 mil of VOO.
You borrow $ 3mil. Your interest (to pay) is 3000000X0.0186=$55800 yearly
However, $10mil in VOO generates $152000 yearly in dividends. End result-you borrowed $3 mil to do whatever, it effectively cost you nothing (well, a decreased divvy).
Yes, you would have to pay the principal at some point, but you can use divvy remainder to do that plus VOO goes up roughly 10% a year, so the loan basically pays for itself (if stock market performs).
That's why rich can have a cake and eat it too, lol
More:
https://www.wellsfargoadvisors.com/why-wells-fargo/products-services/lending/securities-based.htmYes, best rates are for those with lots of assets.
Ret accounts are NOT eligible, though.
Mind you, I have done nothing of the sorts so far, but I am studying the question (after Saylor's remarks).