Re:The Big Escape: How the Ultra-Wealthy Avoid Paying Taxes ...
by mrkurt on Friday September 17, 2021 @12:40PM
(#28567602)
Rich people get access to astonishingly favorable loans. And they never have to make interest payments.
> Merrill Lynch recently quoted an interest rate of 3.2% to clients with at least $1 million in assets. Those with $100 million or more can get a rate as low as 0.87%.
These are loss leaders for banks. They want to entice incredibly wealthy people to do business with them and have their companies do business with them.
> Because your line of credit is secured by your diversified investment portfolio, we can keep the rates low for you. Depending on account size, current rates are 2.40% - 3.65%. Using a line of credit is generally cheaper than carrying a balance on a credit card or taking out a personal loan.
> Borrow up to 30% of your account whenever you need it, for whatever you need. Pay back what you borrow and the interest payment on your own schedule.
> Merrill Lynch recently quoted an interest rate of 3.2% to clients with at least $1 million in assets. Those with $100 million or more can get a rate as low as 0.87%.
These are loss leaders for banks. They want to entice incredibly wealthy people to do business with them and have their companies do business with them.
Wealthfront has a product for the merely rich: https://www.wealthfront.com/portfolio-line-of-credit
> Because your line of credit is secured by your diversified investment portfolio, we can keep the rates low for you. Depending on account size, current rates are 2.40% - 3.65%. Using a line of credit is generally cheaper than carrying a balance on a credit card or taking out a personal loan.
> Borrow up to 30% of your account whenever you need it, for whatever you need. Pay back what you borrow and the interest payment on your own schedule.