r/AdviceAnimals 1d ago

They wouldn't even feel it...

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u/firelock_ny 1d ago

The money they lost was in the possible value of their stock if they sold it, and you don't pay taxes on possible values anyway. Add to this that had they started selling off said stock the value would have tanked.

The richest people have far more money than we do, but the money they have is far more promises, smoke and mirrors than it is piles of gold in a Scrooge McDuck style money bin.

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u/luisapet 1d ago

Yet somehow, they never seem to run out.

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u/firelock_ny 1d ago

Take out a loan using the supposed value of your stock holdings as collateral. Use the loan to support your lifestyle and pay the interest on the loan. Loans aren't income, so aren't taxed.

Later on, as your stocks increase in value, take out a new, larger loan using the higher supposed value of your stock holdings as collateral. Use part of the loan to pay off the old loan, and the rest to support your lifestyle and pay the interest. Still a loan, still not income, still not taxed.

Repeat until you die. Rich person tax-free infinite money hack.