Dan Martell

Essentially rich people that have stock in their primary business, think Elon Musk with all his equity tied up in Tesla, he can use that stock to borrow money, essentially a loan backed by the stock, not pay any taxes because it's a loan, and then just take out an insurance policy to pay back the loan if he dies.

It's called the buy, borrow, die strategy.

And a lot of people use it.

The first part is you have to buy.

That's why rich people buy stocks and they never sell them.

They literally say, this is a portion of my portfolio that I'm never gonna sell.

I'm gonna own them forever.

And oftentimes they'll put them in a family trust so it can be transferred in a more tax efficient way to future generations.

Second is they borrow money from the bank using that portfolio, that stock as collateral.

Again, borrow the money.

There's no taxes when you borrow money so they can pay for personal assets.

And then third is when they die, the life insurance pays back the bank for the money they borrowed that was secured against the stock.

So the stock never has to sell.

So it doesn't trigger any capital gains, which means they don't have to pay taxes.

Their kids get the stock tax-free at today's value.

This is very technical, but understand this.

Step one, go get money.

Step two, invest in your health.

Step three, invest in your knowledge.

Step four, invest in your business.