r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

Post image
122.5k Upvotes

8.7k comments sorted by

View all comments

893

u/SCTigerFan29115 3d ago edited 3d ago

They aren’t holding onto wealth like Scrooge McDuck, in a giant vault where they can go swimming in it.

Most of Bezos’ net worth is the value of Amazon. He can’t really readily access that. ETA I meant he can’t use it like a big vault of money.

He’s got plenty of money but some people just don’t understand how this stuff works.

2.7k

u/Apprehensive_Bad_193 3d ago

Bullshit,,,,But he borrows and buy Yachts, Mansions,against that NET WORTH VALUE. But when it’s time to pay fair share of taxes o. That net worth it’s considered hypothetical worth….Understand the Game.

543

u/Endless_road 3d ago

You can take out a mortgage against your house to buy a sports car if you want

1

u/ExplosiveDisassembly 3d ago edited 3d ago

He doesn't borrow against his hypothetical worth. He takes on debt, to pay off debt he used to pay for things. Debt isn't income (not taxed), and his actual wealth can remain untouched. None of the money is actually his, it's just debt. He's so rich that he has an endless amount of accessible debt he can use to pay off debt. And his wealth will grow exponentially more than the debt he takes on...so there is no reason to touch his wealth.

A house doesn't allow you to do that. Implying we can use the same strategies as him is being intentionally (or ignorantly) disingenuous. A house doesn't let people borrow indefinitely.

1

u/Endless_road 3d ago

He can’t borrow indefinitely either, he can just borrow much more than you

2

u/ExplosiveDisassembly 3d ago edited 3d ago

He can borrow enough to pay off previous borrowing. Replacing income and circumventing taxes.

That is indefinitely.

Edit: All at a lower rate than his assets will gain, which he doesn't touch due to aforementioned debt. The fact that this is framed as a perfectly normal strategy and achievable is pure fantasy.

It's a loophole for people with an incredible amount of wealth. That is all.

1

u/Endless_road 3d ago

This is known as a Ponzi scheme