Locker room Trivia- If a billionaire gets a $180 million loan, is he still rich?

[Gains]

in this country hes definitely getting a bail out

 

[SoSoSlick]

yes.

LET ME FINISH

 

[Umoja]

Yeah, they do that all the time. It is a way of avoiding tax. Something about not receiving an actual payment.

 

[L&HH]

yes.

It’s more tax-efficient.

You can use a personal asset line of credit (secured by stocks for example) to finance certain purchases.

You avoid paying capital gains on the sale of assets and if you never sell, at death, your heirs will get a step-up in the basis.

It obviously comes with some risks, like a margin call and typically they’re structured with a floating interest rate

Buy borrow die…I believe you have to be worth over $300 million for it to be effective as you won’t be able to get low enough interest rates on the loan otherwise.

 

[Harry B]

yes.

It’s more tax-efficient.

You can use a personal asset line of credit (secured by stocks for example) to finance certain purchases.

You avoid paying capital gains on the sale of assets and if you never sell, at death, your heirs will get a step-up in the basis.

It obviously comes with some risks, like a margin call and typically they’re structured with a floating interest rate

That’s cause you’re a girl, I’m a boss, bosses use their own money, I don’t have no money



If you replied to dame with this he’d try to insult you in 15 different ways

 

[Tribal Outkast]

Let a bank loan me 180 million dollars and I’ll let you know

This right here

 

[O³ (O cubed)]

Yes. Elon Musk bought Twitter with a loan from Goldman Sachs. He used his shares for TSLA as collateral.

It is very common practice.

Third of Musk’s Tesla shares tied up in margin loans | IFR

 

[UpAndComing]

If someone is able to get a $180 mill loan from a Bank, they are rich

 

[Red Money]

If someone is able to get a $180 mill loan from a Bank, they are rich

Exactly. They getting those loans against assets they don't want to liquidate.