My First Million #125 - What is the Buy, Borrow, Die Process?
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Nov 4, 2020 The discussion kicks off with a breakdown of the controversial ‘Buy, Borrow, Die’ method for tax avoidance, revealing how the wealthy maneuver their assets. Humor mixes with insights as they tackle the stark contrasts between Silicon Valley tech arrogance and Texas humility. Personal anecdotes flow about unconventional learning and financial strategies, with a spotlight on creative rental arrangements and investing in startups. The episode wraps up with a deep dive into minimalism, recycling challenges, and the meaningful impacts of community initiatives.
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Tech Bro Stereotypes
- Aaron, Shaan Puri's brother-in-law, criticizes tech bros for their perceived arrogance and inflated egos.
- He jokes about their supposed connections to important figures and their all-knowing attitudes.
Tax Avoidance Rabbit Hole
- Aaron describes how he fell down a "rabbit hole" researching how wealthy individuals avoid paying income taxes.
- He learned about depreciation, cost segregation, and the "Buy, Borrow, Die" strategy.
Buy, Borrow, Die Explained
- The "Buy, Borrow, Die" strategy involves buying assets, borrowing against them, and transferring them upon death to avoid inheritance tax.
- This allows the wealthy to live off borrowed money, which isn't taxed as income.
