How do the super-rich pay back loans that they take out against their assets to unlock cash?

Question

I’ve seen in a few places that the super-rich can unlock their wealth ‘tax free’ by taking out a loan secured against their shareholdings or other assets, then use the cash from the loan to buy real stuff.

But how do they pay back the loan?

In: 196

Answer 1

You don’t even have to be super rich. If you have $200k in a Schwab account you can borrow against your own stock portfolio. It’s really easy.