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The way this works is having more debt and income on your W2 / 1040 (If self-employed).
This is how you see super rich people getting tax refunds, or having infinite money despite not liquidating their assets.
This works best in states with minimal, or no income taxes (Like WA), but is effective everywhere.
I do not know about taxes anywhere outside of the USA.
The method if you haven’t guessed it by now is using debt for everything, the issue with normies is they use their CCs and Payday Loans as bailouts or loans instead of treating them like their bank account. Your credit limit, LOC, loan amount etc should never exceed the average daily balance in your checking account.
CCs are the only way you’re getting any % of cash back daily, so if you have a CC you should be using that daily instead of your debit card and paying it off right away.
Onto the more interesting stuff, the easiest assets to borrow against are.
You can also borrow against your car if you own it, but I don’t recommend Title Loans because they come with higher rates because vehicles are depreciating assets, the best assets grow in value over time (or have a track record of doing so)
HELOC: A line of credit against the equity against you own in your house or Real Estate
SLOC: A line of credit against the securities you own in the market
Everyone has at least heard of HELOCs, but SLOCs have much less information on them because normies will most likely never get the chance to even use them.
To get yourself into a position to leverage SLOCs you’re going to want AT LEAST $2,000 in your portfolio, that is the absolute minimum, but I’d recommend more like $20,000+ for reasons I’ll explain.
Dividends: To put yourself in an ideal place to live off SLOCs, your securities dividends should be enough to cover the monthly minimum payment + some towards principle.
Company Value: Also, banks and brokers will look at the health of the companies in your portfolio when evaluating terms of your SLOC.
Don’t own a single penny stock, also, keep your crypto in another account.
The best stocks as of 5/28/2024 for this, in no order would be.
After your portfolio is in a good spot, you don’t have day trading or risky trade behaviors, you can directly ask your brokerage for a SLOC, 9.99/10 they will give you one because it is a collateralized LOC.
Most times this loan will be 50-95% of your portfolio's value, with favorable terms.
I use: Schwab & J.P Morgan
You can use these loans on anything you want in my experience, but some banks do not like you using this to invest more money, and would rather you trade on a margin account instead of getting an entire LOC.
The second thing you should be taking advantage of are Lifetime Insurance Policies.
This is the method which invented the “Be your own Bank” buzz term, and is how the Rockefellers preserve their wealth.
It’s actually very simple, and is much easier to explain than the former method. You can sign up for one of these within the next 10 minutes if you want to.
This is ideal for people who don’t know how to invest, or don’t want to. The difference between a normal dogshit life insurance and LIP’s is that the company will take your money and put it in an array of money growing avenues.
The biggest advantage you have in this route is that LIP’s have a “floor” which your money cannot fall below. They protect your money and life at the same time.
The only “issue” this option has is that it takes like 5 or so years+ to generate the cash value of the policy to start borrowing against it in any significant way.
I say 5 yrs because most people can only afford like $300 a month at most, the more you contribute the faster you can borrow.
LIP loans are guaranteed approval, you’re borrowing against your own money and your loan repayments go directly back to yourself. You can use this money to do whatever you want unlike SLOCs which have SLIGHT restrictions.
For the last part of the thread I’m gonna tell you why being in debt is fucking amazing for taxes and in general.
The IRS does not tax poor people, in fact they get fucking refunds jfl. When you’re in debt against ASSETS (Not shitty CC or Payday Loan debt) you can claim if as Bad Debt.
That’s if you pay yourself through a company.
What you want to do is.
1.) Start an LLC (No I’m not abt to tell you to trade on Forex dw)
2.) Every drop of income you get from your job, “Pay” it to this business.
This way, when you do your personal taxes it looks like you're getting buttfucked by Company A, LLC. And on your business taxes it looks like u have no fucking idea what you’re doing because you have no revenue and only debt.
All of your loan repayments should be from your business bank account, and all of your loan applications / assets should be in your name.
That’s how you make the circle of wealth / life.
And I forgot for some reason I have to say I’m not your FA or anybody's FA, if you lose everything even though you followed this thread word for word that is on you.
This is how you see super rich people getting tax refunds, or having infinite money despite not liquidating their assets.
This works best in states with minimal, or no income taxes (Like WA), but is effective everywhere.
I do not know about taxes anywhere outside of the USA.
The method if you haven’t guessed it by now is using debt for everything, the issue with normies is they use their CCs and Payday Loans as bailouts or loans instead of treating them like their bank account. Your credit limit, LOC, loan amount etc should never exceed the average daily balance in your checking account.
CCs are the only way you’re getting any % of cash back daily, so if you have a CC you should be using that daily instead of your debit card and paying it off right away.
Onto the more interesting stuff, the easiest assets to borrow against are.
- Real Estate
- Securities (Stocks)
- Income
You can also borrow against your car if you own it, but I don’t recommend Title Loans because they come with higher rates because vehicles are depreciating assets, the best assets grow in value over time (or have a track record of doing so)
HELOC: A line of credit against the equity against you own in your house or Real Estate
SLOC: A line of credit against the securities you own in the market
Everyone has at least heard of HELOCs, but SLOCs have much less information on them because normies will most likely never get the chance to even use them.
To get yourself into a position to leverage SLOCs you’re going to want AT LEAST $2,000 in your portfolio, that is the absolute minimum, but I’d recommend more like $20,000+ for reasons I’ll explain.
Dividends: To put yourself in an ideal place to live off SLOCs, your securities dividends should be enough to cover the monthly minimum payment + some towards principle.
Company Value: Also, banks and brokers will look at the health of the companies in your portfolio when evaluating terms of your SLOC.
Don’t own a single penny stock, also, keep your crypto in another account.
The best stocks as of 5/28/2024 for this, in no order would be.
- MSFT [ Quarterly .75 USD per share + They aren’t going anywhere]
- AAPL
- NVIDIA
- AMZN
- QCOM
- VOO & S&P
After your portfolio is in a good spot, you don’t have day trading or risky trade behaviors, you can directly ask your brokerage for a SLOC, 9.99/10 they will give you one because it is a collateralized LOC.
Most times this loan will be 50-95% of your portfolio's value, with favorable terms.
I use: Schwab & J.P Morgan
You can use these loans on anything you want in my experience, but some banks do not like you using this to invest more money, and would rather you trade on a margin account instead of getting an entire LOC.
The second thing you should be taking advantage of are Lifetime Insurance Policies.
This is the method which invented the “Be your own Bank” buzz term, and is how the Rockefellers preserve their wealth.
It’s actually very simple, and is much easier to explain than the former method. You can sign up for one of these within the next 10 minutes if you want to.
This is ideal for people who don’t know how to invest, or don’t want to. The difference between a normal dogshit life insurance and LIP’s is that the company will take your money and put it in an array of money growing avenues.
The biggest advantage you have in this route is that LIP’s have a “floor” which your money cannot fall below. They protect your money and life at the same time.
The only “issue” this option has is that it takes like 5 or so years+ to generate the cash value of the policy to start borrowing against it in any significant way.
I say 5 yrs because most people can only afford like $300 a month at most, the more you contribute the faster you can borrow.
LIP loans are guaranteed approval, you’re borrowing against your own money and your loan repayments go directly back to yourself. You can use this money to do whatever you want unlike SLOCs which have SLIGHT restrictions.
For the last part of the thread I’m gonna tell you why being in debt is fucking amazing for taxes and in general.
The IRS does not tax poor people, in fact they get fucking refunds jfl. When you’re in debt against ASSETS (Not shitty CC or Payday Loan debt) you can claim if as Bad Debt.
That’s if you pay yourself through a company.
What you want to do is.
1.) Start an LLC (No I’m not abt to tell you to trade on Forex dw)
2.) Every drop of income you get from your job, “Pay” it to this business.
This way, when you do your personal taxes it looks like you're getting buttfucked by Company A, LLC. And on your business taxes it looks like u have no fucking idea what you’re doing because you have no revenue and only debt.
All of your loan repayments should be from your business bank account, and all of your loan applications / assets should be in your name.
That’s how you make the circle of wealth / life.
And I forgot for some reason I have to say I’m not your FA or anybody's FA, if you lose everything even though you followed this thread word for word that is on you.
