The ultra-wealthy don’t play by the same rules as the rest of us. They don’t just make money; they warp time, space, and tax law to keep it. Enter the “Buy, Borrow, Die” strategy—an esoteric financial cheat code that allows the rich to sidestep taxes the way a seasoned gamer avoids paying for in-app purchases. It’s legal. It’s brilliant. And it raises ethical dilemmas so uncomfortable they could double as a seat on Spirit Airlines.
Step One: Buy (Stuff That Gets More Valuable)
The rich aren’t rich because they have a checking account with more zeros than a philosophy major’s job prospects. They’re rich because they own things—things that other people want more of as time passes. These things include:
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Stocks: Shares of companies that keep getting richer, like Apple, Amazon, or whatever biotech startup is promising to upload your consciousness to the cloud.
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Real Estate: Land and buildings, because people always need places to live, work, or pretend to work while watching YouTube.
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Art & Collectibles: Because nothing says “I am untouchable by financial reality” like spending $80 million on a painting that looks like a toddler’s fever dream.
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Fine Wine: Not to drink, of course—just to sit in a temperature-controlled vault until some other rich person decides they want it more.
The play here is simple: buy assets that increase in value over time. But here’s the key—never, ever sell them. Selling triggers taxes, and taxes are for suckers.
Step Two: Borrow (Against the Stuff You Bought)
Normal people take out loans to buy things they can’t afford. The ultra-rich take out loans so they never have to sell anything. Because when you sell, the government wants a slice. When you borrow, you just get more money—tax-free.
Here’s how it works:
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You walk into a bank, drop your net worth on the table like it’s an Uno reverse card, and ask for a loan using your assets as collateral.
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The bank, recognizing that you’re basically a human version of Fort Knox, happily lends you the money at a low interest rate—sometimes as low as 0.87% for those with $100 million or more.
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You now have millions in cash without selling a single thing, which means Uncle Sam can’t touch it.
Banks love these loans because they make money managing assets instead of forcing clients to sell. And the rich? They use these loans for everything—yachts, sports teams, or just keeping their name off the tax roll.
Step Three: Die (But Not Before Passing It All On)
Here’s the real kicker. The final step in this strategy is to simply die. But don’t worry—the fun continues even after you’re gone.
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The Step-Up in Basis: When heirs inherit assets, the government resets the cost basis to the current market value. Translation? The decades of appreciation that should’ve been taxed—poof, gone.
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Using Assets to Pay Off Loans: The next generation can use the appreciated assets to wipe out any outstanding debts and keep the cycle going.
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Infinite Generational Wealth: Because the best way to get rich is to be born into a family that’s already playing chess while everyone else is stuck on Candyland.
Corporate insiders and billionaires have been doing this for decades. Elon Musk, John Malone, and even FedEx founder Fred Smith have all used loans backed by their assets to maintain control without selling their stakes. Banks don’t mind—so long as the portfolio stays valuable, they’re happy to keep lending.
Economic and Ethical Questions (Or: Is This Whole Thing Kind of Gross?)
There’s no doubt that “Buy, Borrow, Die” is a genius way to minimize taxes. But does that make it fair?
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Wealth Concentration: The rich keep getting richer while everyone else gets excited about a 3% raise that barely covers inflation.
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Tax Fairness: Is it right that billionaires pay a lower effective tax rate than their assistants?
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Accessibility: This game isn’t for the middle class. You need significant wealth to start, which is why the gap between rich and poor keeps looking like an optical illusion where the floor just gets further away.
Final Thoughts: The Game Is Rigged, But You Can Still Learn From It
You probably can’t execute “Buy, Borrow, Die” yourself unless you’re already loaded, but understanding it helps explain why the rich always seem to come out on top. It’s not just about working hard—it’s about knowing the rules of the game and bending them so far they practically snap.
The ultra-wealthy have built a system where they buy appreciating assets, leverage them for tax-free cash, and pass it all on with minimal government interference. It’s clever. It’s infuriating. And unless something changes, it’s only going to keep working.
Meanwhile, ordinary taxpayers are left playing by an entirely different set of rules—ones that involve W-2s, withholdings, and whatever deductions TurboTax spits out. Maybe the real lesson here isn’t how unfair it all is, but how creative the wealthy get when it comes to keeping what’s theirs.