Big Barry Bitcoin on Nostr: I spent some time trying to get it too. Even though it doesn't work in the UK 😅. ...
I spent some time trying to get it too. Even though it doesn't work in the UK 😅.
You do incur ever growing debt. Ideally you pay the interest so you're not growing faster than you need to. As long as your asset keeps growing faster than your debt, you never need to pay the debt.
It isn't as easy as it sounds, but if your asset pays dividends and the dividends (after tax) help to keep the debt in control, then it is manageable.
If you ever settled the loan by liquidating the asset, you would be liable for Capital Gains tax.
When you die, you pass on the asset. The inheritors also inherit the debt. The "cost basis" is reset. This means that if THEY pay off the loan by selling the asset, then there is no capital gains to pay.
They settle the loan and have no extra bills, then they start again with whatever is left of the asset.
If they can afford not to sell, they keep going without paying off the inherited debt first.
You do incur ever growing debt. Ideally you pay the interest so you're not growing faster than you need to. As long as your asset keeps growing faster than your debt, you never need to pay the debt.
It isn't as easy as it sounds, but if your asset pays dividends and the dividends (after tax) help to keep the debt in control, then it is manageable.
If you ever settled the loan by liquidating the asset, you would be liable for Capital Gains tax.
When you die, you pass on the asset. The inheritors also inherit the debt. The "cost basis" is reset. This means that if THEY pay off the loan by selling the asset, then there is no capital gains to pay.
They settle the loan and have no extra bills, then they start again with whatever is left of the asset.
If they can afford not to sell, they keep going without paying off the inherited debt first.