When a rich person says debt is good, they're speaking a language you don't understand.

[Ethnic Vagina Finder]

Rich person debt and mortgage, car loan, student loan, credit card debt isn't the same.

Musk is the richest man in the world, and it's 100% stock. People like him leverage debt (loans) against stock options to buy shyt.
Most CEO's and executives do the same thing. 98% of Tim Cooks annual compensation is stock options with only 2% of it earned income..
And the people who say it's pocket watching and champion/look up to the ultra wealthy, they own 90% of the stock in this country. SO the other 90% is fighting for the other 10% which is minuscule relatively speaking.

 

[Ezekiel 25:17]

Debt is good if it's an appreciating asset. A house, land, a business, etc.

 

[Sugarbush]

I’m debt averse so no debt is good!

 

[Hater Eraser]

 

[Sugarbush]

Rich person debt and mortgage, car loan, student loan, credit card debt isn't the same.

Musk is the richest man in the world, and it's 100% stock. People like him leverage debt (loans) against stock options to buy shyt.
Most CEO's and executives do the same thing. 98% of Tim Cooks annual compensation is stock options with only 2% of it earned income..
And the people who say it's pocket watching and champion/look up to the ultra wealthy, they own 90% of the stock in this country. SO the other 90% is fighting for the other 10% which is minuscule relatively speaking.

Help me make it make sense…

Rich person sells stock to live off of then pays taxes on the capital gains? Rinse, wash, repeat….. how is this a win?

 

[WIA20XX]

Yeah, I been telling these cats that they need to be CEOs of major tech companies.

Stay poor Coli Brehs

 

[⠀X ⠀]

yeah, debt is cool for rich people, as it allows them to multiply their net worth. As long as they don’t over leverage, they’re good. For everyone else, it’s mostly a trap, and destroys your net worth.

 

[ThatTruth777]

Made me think of some grindset guy who said, I take high interest loans because it makes me grind harder.

 

[Hater Eraser]

Debt is good if it's an appreciating asset. A house, land, a business, etc.

" Go dark, underground like tremors (of course)
Have heart, but don't double-cross your vendors (your source)
Stay solid, concrete, stiff (sturdy)
It's all about buildin' relationships (trustworthy)
Trapology, regulation, number eight (rules)
Don't tell your moves you gon' make to your date (that ain't cool)
Technology, information, it's great (warning)
They might ask her some questions and she might break (turn informant)
Hurry up, time is of the essence (quick)
Get some legitimate business and start investin' (legit)
Watch your back, be careful with directions (rearview)
Turn off your locations in your settings (they might follow you)
Life insurance and health care is key (right)
Don't wanna have to depend on a GoFundMe (pride)
Assistance and welfare is free (wow)
But I'ma be the first millionaire in my family tree (make 'em proud) "

 

[IsThatBrothaMouzone?]

Help me make it make sense…

Rich person sells stock to live off of then pays taxes on the capital gains? Rinse, wash, repeat….. how is this a win?

At last check, the long term capital gains tax was like 20% I think (long term = held stock for a year or more).

The top tax rate for income is like 37% or 39%. That's why athletes earn crazy money but get taxed out the azz. Meanwhile the billionaire writing the checks could conceivably pay less in taxes each year.

 

[Fillerguy]

Help me make it make sense…

Rich person sells stock to live off of then pays taxes on the capital gains? Rinse, wash, repeat….. how is this a win?

They shouldn't be paying taxes if they aren't selling stock. Stock/investments held are taxed as ordinary income. So your wealth can grow while still being taxed at a lower rate than what your net worth is. Said person can leverage that debt into other investments, to grow their wealth even more, while not having to "pay for it" unless they sell.

The more wealth you have, they of your money you need to spend.

 

[VegetasHairline]

Please stop making threads!

 

[IIVI]

Regarding stock options: CEO’s get paid in stock options because the board figures out how many stock options the CEO and other people in the company should be getting. It’s all voted on. That’s basically how it works 90% of the time.

That means the CEO, board, insiders, etc. get paid based on how well the company does, so they’re all incentivized to make the price go up.

That’s why when a company has a great CEO and board it’s good to bet on the company/own the stock because they want the price to go up themselves because that’s effectively their entire salary. This is why it’s best to focus on a company long term rather than these quick plays: CEO’s can’t make valuations of companies skyrocket in 1 month, it takes time. It’s additionally why some people shouldn’t freak out when CEO’s of big companies sell their stock: many times it’s because they want to buy a yacht or whatever and nothing more.

 

[Amo Husserl]

Flippin' work to pay interest on the difference just to leverage the debt?


Hustlin' backwards if you only feedin' more vultures.
I ain't breakin' my back raisin' a bone orchard to feed debt collectors.
That's the shyt that keep 'em in the hole stressin'. Do business to get the work with no debt and flip it ASAP.
Build on the profit, not the debt. Write off the loss, not the stress.

 

[Ethnic Vagina Finder]

Debt is good if it's an appreciating asset. A house, land, a business, etc.

A house isn’t a good investment if you’re looking at it solely as an investment. It’s too volatile in this era. Even people that flip houses take on a lot of risk and the longer they hold it, the more money they’re losing which eats into their profit when they do sell it and sometime they can even take a loss.