How To Invest Like The 1%

This is how to invest like the 1% - by borrowing against your assets.

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Andrei Jikh
4132 S. Rainbow Blvd # 270
Las Vegas, NV 89103

The millionaires and billionaires of the world are borrowing money at an accelerated rate. An article from the Wall Street Journal revealed that Morgan Stanley’s wealth-management clients have about $68 billion worth of securities-based loans (more than double what it was 5 years ago).

Bank of America also reported their clients have 62.4 billion dollars in securities based loans. Which makes you wonder, why would do the rich need to borrow money if they already make and have a lot of money? This is how the rich control all the world's wealth with this investing strategy - buy, borrow, die. At its core. Here's how it works.

WHAT IS BUY, BORROW, DIE?
It's a three step strategy that's the core of how wealth is kept inside of small circles of the elite. They do this without ever selling their investments and the way it’s done is they borrow against an asset without selling the asset itself.

DO I HAVE TO BE RICH TO DO THIS?
No, it applies to everyone across all income levels which is that much more unfortunate that we aren't taught how to do this in school.

HOW IT WORKS

STEP 1 - BUY:
In traditional finance speak, this phase is also sometimes called the "accumulation phase" of investing - this is where, when we’re younger, the goal is to go to school, get a degree, get a high paying career, save our money, and buy assets. This is where most of us will spend a majority of our lives - in the accumulation phase. Now let’s get a little more specific about the different assets we can and what they do.

THE BIG 3 - REAL ESTATE, STOCKS, CRYPTO
Each of these 3 assets represents a different benefit in relation to the buy, borrow, die strategy. Real estate is arguably the best in this strategy because it's incredibly stable, it preserves value, we can use it as a write off, but most importantly - we can borrow against it. The rich buy real estate and never sell.

The rich also buy and invest in the stock market the exact same way - they invest and buy cash flowing stocks (or growth stocks) and allow them to grow to millions of dollars throughout their lifetime. Instead of selling those stocks, they will take out a loan against their portfolio.

Crypto works the exact same way. Buy stable bluechip cryptocurrencies like Bitcoin and Ethereum - and let the growth take over leaving you with a multi million dollar portfolio to borrow against.

STEP 2: BORROW
The goal is to use "interest rate arbitrage" to our advantage by borrowing at a lower interest rate than the interest rate that our assets will grow by - allowing us to pocket the difference.

GIVE ME AN EXAMPLE!
Let’s say you have $100,000 invested and it’s making 10%, you could borrow another $100,000 at 2% - you could also invest that money so now you’re investing $200,000. Since it only costs you 2% (or $2,000 a year) - you can make a profit because you’re making $10,000 a year extra with the borrowed money. After interest, it means you’re getting $8,000 for free. Take that strategy and scale it to millions of dollars to see the potential.

HOW DO I DO THIS WITH STOCKS?:
There's 2 ways to do it with your stock portfolio. Either an SBLOC (securities based loan of credit) or a margin loan.

HOW DO I DO THIS WITH REAL ESTATE?
HELOC. Home equity line of credit. If you have equity in your house, you can use it to take out a low interest rate loan.

HOW DO I DO THIS WITH CRYPTO?
Many crypto brokers offer some sort of "crypto borrow" product that allows you to use your Bitcoin, ETH, etc. to borrow against itself.

WHAT'S THE DOWNSIDE?
You can get margin called if there are margin minimums. If you portfolio falls 50%, you could be forced to sell all your investments to cover the loss of the loan and lose all your money (Archegos is the most recent example of a billionaire family that over leveraged).

STEP 3: DIE
The rich will put all their assets inside of a trust and their family will inherit their assets at a "stepped up cost basis" which allows them to sell those assets without incurring taxes. They don't sell though - they continue buying, borrowing, and passing it on.

[AndreiJikh]

That thumbnail took me two hours to do, my bad for being late!

[camdencrum]

Finally someone who is willing to teach us younger guys instead of pushing some bs course on us. Appreciate it

[arsanalipour]

The first step to learning day trading is reading books and watching videos! This is the process of gaining knowledge. But remember, just because you read a book on sky diving doesn’t mean you’re ready to jump out of an airplane!. you must work with an advisor

[adaadadddaad]

Successful people don't become that way overnight .most people you see as a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life

[ZacsMoneyFAQs]

"Instead of hating the game, learn the game's rules, learn how to play the game, and learn to love the game" We're mad because nobody ever taught us the rules to the game. That was an EXCELLENT video! Sorry that I'm so late to comment but, I loved this! Thank you so much for sharing this Andrei!

[alaysiaechols]

When you invest, you’re buying a day that you don’t have to work. I pray everyone reading this becomes successful

[aallpprr]

but how do the rich pay off the debt they used to buy a yacht? Since that doesn't make them any money and won't profit from leverage

[bethrosenbluthvertino]

Only fee cmpanies are able to get you a desired ROI, I’m glad I found mine

[interescrafts]

I FOUND THE KEY 🔑 TO THE FUTURE, YOU ALL NEED TO CREATE ACC AND START IMMEDIATELY

[ussoperativeangel]

Determination is highly needed in stocks trading. What most people see at a glance wealth, a great career, purpose is the result of hard work and hustle over time

[north-ik]

This is so true. At my previous job as a CPA for wealthy clients and now working for billionaires I can confirm that the strategy at the highest level is to buy assets, borrow against them and then pass it on to the next generation. It's a brilliant move.

[tannerneurobrain]

Bitcoin is the future, investing in it will be the wisest thing to do especially with the current rise

[interescrafts]

Getting a way to make income without having to leave home isn’t exactly as easy as you all think it is, talk is cheap and it’s sure easier said than done, I have my source, and I would rather stick to that, it pays well, even my stepdad quickly

[zoltronfilms]

Success is about focusing Your energy on what creates results and using what you already know

[kev_gacha]

Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works

[benjaminmoebius]

I have been looking for a straightforward explanation of buy, borrow, die! Great video and you are really filling a gap in financial education.

[gchan]

Hi Andrei! I've never commented before. But I just want to say I really appreciate your hard work and high quality videos. You're extremely interesting to watch/listen to, and I've been learning a lot from you! Thank you for making a difference into so many of our lives and I look forward to watching more of your content. <3

[bluecoded]

"you will eventually get there" i never had someone look at me dead in the eye and said that. MILLIONAIRE STATUS HERE I COME

[icecold_montx]

The best decision I ever made in my life was investing in financial market. Trust me guys, it pays!😊

[maxreynoso]

This has been by far your most valuable and important video you’ve made! Thank you for doing this sir!