Buy. Borrow. Die. | How The Rich Stay Rich

In today's video, we're going to talk about the phrase "Buy Borrow Die" and how the rich stay rich by taking advantage of the American tax system.

The phrase "Buy Borrow Die" was created more than 20 years ago by Professor Ed McCaffrey who use this simple phrase to summarize the American tax system in a nutshell.

The basic premise is that the rich buy something like an asset such as stocks or real estate, for example, and they then borrow against these assets instead of selling them. Finally, they die and the estate goes to their heirs and beneficiaries.

In this video we're going to break down these three steps in more detail, and how the rich use by borrow and die to stay rich.

Stay tuned until the end of the video where I give my opinion as always!

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Instrumental Produced By "iAmHaywood" on IG

⏰ Timestamps ⏰:
0:00 - Introduction
0:55 - Buy
2:28 - Borrow
4:19 - Policygenius Spot
5:17 - Die
6:55 - Conclusion
9:02 - LOL

ABOUT ME 👇

My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.

[jamesalexander]

According to Elon Musk", Since I’ve been asked a lot: I will always advise, we buy stock in several companies that make products & services that you believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.

[MariaDeigo]

*Impressive! your potential seems limitless* I'm fascinated by investing, How can I invest *$200K* sitting around doing nothing in the bank and what sector do you recommend getting into?

[ryanwoods]

I've been investigating this strategy for a few weeks and I think it's key to understand that you need a way to pay back the loan that you pull out. Seems like real estate is the best way to do it because you'll have the cash flow from real estate to pay back the loan. If you were to borrow against your stocks, you should buy other cash flowing assets so that you can pay back that loan.

[EachAdventure]

We spent 3 years getting out of debt following the Dave Ramsey plan. While it definitely works and I would never want to go back to our prior situation, I agree with you that there is a golden middle to utilizing debt especially as a wealth building tool. Great video, as always!

[Josafit]

YouTube is one of the greatest creations bc of vid like this… we would never know of this in our social circle if it wasn’t for videos and financial books

[NickOloteo]

Marko isn’t just a pretty face. He has the most informative and valuable financial content in the 🇺🇸

[williamfsu]

@Marko you have truly grown this platform, I found your channel during the pandemic and would run into your videos every now and then. I always watched but never followed, today you’ve earned yourself another follower! Clean, honest, and concise illustration of what you are teaching!! Keep going brother, sky’s the limit!

[victorcretu]

That works beautifully when the economy is booming. In a tightening monetary policy period, it's a double whammy. Your asset is worth less, while your borrowing cost is much more expensive.

[stevengardner]

For purposes of doing this as a means to live off of your wealth, I assume this works for the rich because in addition to the asset they're borrowing against with an SBLOC or HELOC, they also have to have additional assets and passive income in order to make sure they can make the monthly payments on that loan and to protect themselves from getting wrecked in a market downturn. It doesn't seem like enough for the average person to build up to having one asset worth $1M and then borrow against it without having any additional cushion.

[suzanne]

*"The best time to plant a tree was 20 years ago and the next best time is now"* I consider this to be best motivational quote I've heard in a very long time. But motivational quotes are useless if you don't practice what you preach*

[michaelchad]

Investing in stocks or real estates are very good ideas though real estate investment seems a bit more complex. Who else is in line with me?

[sinjay]

I'm watching all these videos trying figure out the first step I need to take.

[tigercake]

that sweater looks comfy, i'm jealous

[abethereal]

The amount of valuable information that this man puts on youtube is insane.

[firingallcylinders]

I live by the philosophy "be in debt to no man" as often as possible. I think Americans buy way too many things on credit. I understand most people have a mortgage at some point in their life, but unless absolutely necessary you shouldn't be financing things, especially things you don't need. It's a much less stressful life.

[princessjoymillani]

Thank you for this video Marko! This is definitely for those who like to take risks!

[danesmithjr.]

Marco,
Tons and tons of money guru videos out there, I clicked yours amongst many. It only took me 3 minutes into the video to realize what I already knew but needed that extra push. The debt to savings ratio by % of your interest rate. It’s always far better and wiser and smarter to pay off your debt and in return you’re mentally free, while saving more money on your bottom line.

I hit a couple of big buttons on my payment button tonight paying off over $20, 000 in debt I had easily neglected due to a well-off checking to savings ratio.

Thanks for the great advice and pushing me to do this even before Christmas! Cheers.

[SNakamoto-]

The only time I've heard this explained and I properly understood

[SmartHobbies]

You make some great points. I thought you explained the 1031 idea very well. There is nothing wrong with paying as little tax as legally possible. I wish you the best with your channel.

[losnosequien]

Marko thanks for making this concept so easily understandable ! Keep the work