Pretty much. Most high wealth people’s net worth is heavily made up of stocks. You don’t pay tax on stock and don’t pay tax when the price goes up. But you can use it to leverage a loan. You can leverage a million dollar loan against your stock and pay no tax on your million dollars. Then your stock goes up and you go to the bank and borrow more against the same stock because it’s worth more.
Pretty much. Most high wealth people’s net worth is heavily made up of stocks. You don’t pay tax on stock and don’t pay tax when the price goes up. But you can use it to leverage a loan. You can leverage a million dollar loan against your stock and pay no tax on your million dollars. Then your stock goes up and you go to the bank and borrow more against the same stock because it’s worth more.