How to set up a securities-backed line

Sharran outlines steps to apply with brokerages, portfolio evaluation, credit line use, and repayment flexibility.

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Episode notes

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Most people think taxes are unavoidable once their investments grow. But billionaires play a completely different game. In this episode, Sharran breaks down the single strategy the wealthiest individuals use to access liquidity without selling assets or paying capital gains taxes.

You’ll learn how securities-based lending works, why borrowing is not a taxable event, and how billionaires like Elon Musk, Jeff Bezos, and others use their portfolios as personal banks. More importantly, Sharran explains how this strategy applies to everyday investors with far smaller portfolios.

Sharran also walks through the real risks—margin calls, interest rate exposure, and poor capital allocation—so you understand when this tool is powerful and when it can destroy wealth.

If you want your money to keep compounding while still funding real estate, business growth, or new opportunities, this episode gives you the playbook.

“The greatest hack in wealth creation is to become your own bank so that you can borrow from yourself.”

- Sharran Srivatsaa

Timestamps:

01:16 - How billionaires avoid taxes without loopholes

03:05 - Why selling assets triggers wealth destruction

05:17 - Securities-based lending explained step by step

06:51 - Real example: Borrow vs. sell

10:26 - Margin calls and how investors get wiped out

11:30 - Safe borrowing rules to protect your portfolio

13:23 - How to set up a securities-backed line of credit

15:25 - Key takeaway from today's episode

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